A Company Asked One of Their Analysis Team to Analyze

question 5

Essay

A company asked one of their analysis team to analyze and create models that help decide whether they should manufacture a particular product or outsource its production. The different components are given below:
Fixed Cost, FC = $25,000
Material Cost per Unit, MC = $2.15
Labor Cost per Unit, LC = $2.00
Outsourcing Cost per Unit, O = $4.50
Note that per-unit material and labor cost together make up the variable cost per unit.
Use a two-way data table to show how the savings due to outsourcing changes as a function of different production volume and different bids on per-unit cost for outsourcing. Vary the production volume from 0 to 100,000 in increments of 10,000. The six bids are $3.11, $3.49, $4.50, $4.98, $5.12, and $5.45.

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Definitions:

Onychomycosis

A fungal infection of the nail that causes discoloration, thickening, and separation from the nail bed.

Inflammation

The body's immune response to infection or injury, characterized by redness, heat, swelling, and pain.

Ecchymosis

A discoloration of the skin resulting from bleeding underneath, typically caused by bruising.

Leukoderma

a skin condition characterized by localized or widespread loss of pigmentation, resulting in white patches on the skin.