Victory Electronics Makes a Part Used in the Manufacture of Desktop

question 8

Essay

Victory Electronics makes a part used in the manufacture of desktop computers. Management is considering whether to continue manufacturing the part, or to buy the part from an outside source at a cost of $27.00 per part. Victory Electronics needs 80,000 parts per year. The cost of manufacturing 80,000 parts is computed as follows:

If Victory Electronics buys the part, it would pay $.40 per unit to transport the parts to its manufacturing plant. Purchasing the part from an outside source would enable the company to avoid 40% of fixed manufacturing overhead costs. Victory Electronics' factory space freed up by purchasing the part from an outside supplier could be used to manufacture another product with a contribution margin of $65,000.
Prepare an analysis to show which alternative makes the best use of Victory Electronics' factory space:
1. Make the part.
2. Buy the part and leave facilities idle.
3. Buy the part and use facilities to make another product.

Assess the impact of job design approaches like simplification, enlargement, enrichment, and rotation on workers and organizational efficiency.

Appreciate the role of technology and flexible work arrangements in modern organizational settings.

Understand the scope and limitations of the president's executive power and how it relates to the Constitution.

Recognize the sources of law that govern commercial relationships and how case law and statutory law interact.

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Definitions:

Rapid Eye Movement

A phase of sleep characterized by quick, random movements of the eyes, associated with vivid dreaming and increased brain activity.

Narcolepsy

A disorder involving sudden and unpredictable daytime attacks of sleepiness or lapses into REM sleep.

Sleepiness

Sleepiness is the state of feeling drowsy or tired, often leading to a decreased ability to remain awake and alert.

Unpredictable

The quality of being unable to be predicted or foreseen, often leading to uncertainty or surprise.