Archer Currently Manufactures a Subcomponent That Is Used in Its

question 75

Essay

Archer currently manufactures a subcomponent that is used in its main product. A supplier has offered to supply all the subcomponents needed at a price of $42. Archer currently produces 100,000 subcomponents at the following manufacturing costs: a. If Archer has no alternative uses for the manufacturing capacity, what would be the profit impact of buying the subcomponents from the supplier?
b. If Archer has no alternative uses for the manufacturing capacity, what would be the maximum price per unit they would be willing to pay the supplier?
c. Now assume Archer would avoid $150,000 in equipment leases and salaries if the subcomponent were purchased from the supplier. Now what would be the profit impact of buying from the supplier?

---

Definitions:

Unreasonable Data

Information that is irrational or not based on sound reasoning, often due to errors, outliers, or incorrect inputs.

Validation Rule

A criterion or constraint set in databases and forms to ensure that the data entered by users meets specific requirements or patterns.

Table

An arrangement of data made up of rows and columns that is often used to organize and present information systematically.

Expression

In programming, a combination of variables, operators, and values that represents a single value or outcome.