A Company Has Two Alternatives for Meeting a Customer Requirement

question 30

Essay

A company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding.If done in-house, fixed cost would be $350,000 with variable cost at $30 per unit.Alternative two is to outsource for a total cost of $80 per unit.Determine the breakeven quantity and determine if they should make the item in-house or outsource it.

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Definitions:

Self-Efficacy Expectations

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments, reflecting confidence in the ability to exert control over one's own motivation, behavior, and social environment.

Psychologically Hardy

The characteristic of being resilient in the face of stress and adversity, involving qualities like commitment, control, and challenge.

Irrational Beliefs

Misguided, unrealistic thoughts and convictions that can lead to unproductive emotions and behavior, often examined in the context of cognitive-behavioral therapy.

Catastrophizing

A cognitive distortion involving an irrational thought pattern where an individual expects or exaggerates the worst possible outcome in a situation.