Hidef Electronics Manufactures a Digital Flat Screen TV Which Includes

question 201

Essay

Hidef Electronics manufactures a digital flat screen TV which includes an MP3 player. Its current costs of manufacturing the needed 100,000 MP3 players per month are:

Another manufacturer offers to sell Hidef the needed 100,000 MP3 players per month for $13 per unit on as flexible a delivery schedule as Hidef wants. Hidef expects to reduce fixed overhead by $50,000 per month if MP3 players are purchased from the outside supplier. If the MP3 players are purchased Hidef will pay $0.50 per unit to transport the MP3 players to its manufacturing plant, where it will add its own logo at a cost of $0.10 per player.
No alternative use is available for the unused capacity if MP3 payers are purchased rather than manufactured. Prepare an analysis to show whether Hidef should make or buy the MP3 players.

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Definitions:

Optimistic Bias

The belief that other people, but not oneself, will develop a disease, have an accident, or experience other negative events.

Weight Control

Management of weight through a balance of diet and physical activity to maintain a healthy body mass index (BMI).

Stice and Colleagues

Researchers known for their contributions to a specific field, though the term requires more context to identify the specific area of expertise or study.

Weight Concerns

Anxiety or worry related to one's body weight or body shape, often leading to behaviors aimed at managing or altering physical appearance.