Harris Company Currently Produces a Component That It Uses in Making

question 120

Essay

Harris Company currently produces a component that it uses in making some of its products.Harris has calculated the following costs for making the component:
$$\begin{array} { l r } \text { Unit-level costs } & \\\text { Materials } & \mathbf { 2 0 } \\\text { Labor } & 28 \\\text { Overhead } & 2 \\\text { Allocated facility-level costs } & \underline {10} \\\text { Total cost } & \underline { \$6 0 } \\\end{array}$$ Harris is considering outsourcing the component.A supplier has offered to sell the component to Harris for $52 each.Harris needs 8,000 units each year.
Required:
Should Harris outsource the component? Support your answer with appropriate computations.

Analyze the role of structure in labour division and coordination within an organization.

Understand the rationale behind dividing labour in organizations.

Identify the implications of vertical and horizontal division of labour.

Define and differentiate between differentiation and integration within organizational structures.

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Definitions:

Data

A record of an observation or an event such as a test score, a grade in math class, or response time.

Personal Pizzas

Small-sized pizzas intended for individual consumption, often customizable with a variety of toppings.

Median

The middle value in a data set when it is arranged in ascending or descending order.

Midpoint

The value that lies exactly in the middle of a data set when it is ordered, or the central point of a line segment.