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:

Patient Satisfaction

A measure of the degree to which a patient is content with the healthcare they received from their healthcare provider.

Hospital Readmission

The act of admitting a patient to a hospital after a recent discharge, typically within a specific time frame and for the same or related condition.

Discharge Planning

Activities directed toward identifying future proposed therapy and the need for additional resources before and after returning home.

Upon Admission

The standard protocols and assessments performed when a patient is admitted to a healthcare facility.