Soft Key is trying to determine how best to produce itsnewest product, DVORK keyboards. The keyboards couldbe produced in-house using either Process A or Process B,or purchased from a supplier. Cost data are given below.For what levels of demand should each process be chosen? Fixed Cost Variable CostProcess A $ 8,000 $10Process B $20,000 $ 4Supplier $ 0 $20
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Soft Key is trying to determine how best to produce its
newest product, DVORK keyboards. The keyboards could
be produced in-house using either Process A or Process B,
or purchased from a supplier. Cost data are given below.
For what levels of demand should each process be chosen?
Fixed Cost Variable Cost
Process A $ 8,000 $10
Process B $20,000 $ 4
Supplier $ 0 $20
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- Adidas is an athletic company designs and manufacturesseveral athletic things. Football is one of the company'sproducts that sells for $40 per unit. Total fixed costs relatedto the manufacturing of the football are $150,000 per monthand variables costs involved in manufacturing are $ 15 perunit. 1- Compute the break- even point of the football in unitsand dollars?Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in house using either Process A or Process B or purchased from a supplier. For what levels of demand should each process be chosen? O O Fixed Cost Variable Cost per unit Process A $8,000 $10 Process B $20,000 $4 A From 0-800 Supplier, From 800 to 2000 Process A, From 2000 to infinity Process B Supplier $0 $20 B From 0-800 Process A, From 800-2000 Process B, From 20000 to infinity Supplier C From 0-2000 Supplier, From 2000 to infinity Process B, and Never Process A D From 0-2000 Process A, From 2000 to infinity Process B, and Never Supplier E Always use Supplier, Never use Process A, Never use Process B ד חDBS is also expecting the demand for its top-of-the range devices to increase further from the next year. Given the increase in annual requirement, the production manager is contemplating to start manufacturing the special components in-house to save costs rather than sourcing them from outside. Given the current purchase price of $9000 per unit, what will the average annual requirement need to be in order to justify making the components in-house if the variable cost of making is $6750 per unit and an upfront fixed cost of $55,000,000 is needed to procure the necessary plant and equipment? However, in the event that the expected increase in demand does not materialize and the demand is actually forecast to drop to 20,000 units next year, then what will be the maximum price per unit that DBS would be willing to pay to the supplier in order to continue buying from them? Going forward, if it is found to be a better decision to make the components in-house, DBS will then need to…
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