A Company Has Two Alternatives for Meeting a Customer Requirement

question 25

Multiple Choice

A company has two alternatives for meeting a customer requirement for 6,000 units of a specialty molding. If done in-house, fixed cost would be $350,000, with variable cost at $30 per unit. If outsourced, the cost is $80 per unit. Determine the break-even point and determine if they should make the item in-house or outsource it.

• A) break-even point = 7,000 units; outsource it
• B) break-even point = 7,000 units; make it in-house
• C) break-even point = 11,667 units; outsource it
• D) break-even point = 11,667 units; make it in-house

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Definitions:

Conference Room

A room provided for singular events such as business conferences and meetings, typically equipped with audiovisual and telecommunication setups.

Memory Loss

The inability to remember information or events that one would normally be able to recall, often as a result of factors like aging, disease, or trauma.

Echoic Sensory Memory

A component of sensory memory that specifically holds auditory information, lasting for a few seconds after the initial stimulus.

Iconic Sensory Memory

The visual component of sensory memory, allowing the mind to retain an image of a visual stimulus for a brief period after the actual stimulus is gone.