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storchak [24]
2 years ago
5

p Marine International manufactures an aquarium pump and is trying to decide whether to produce the filter system in-house or si

gn an outsourcing contract with Bayfront Manufacturing to make the filter system. Marine’s expertise is producing the pumps themselves but they are considering producing the filter systems also. To establish a filter system production area at Marine International, the fixed cost is $300,000 per year and the company estimates their variable cost of production in-house at $12.25 per filter system. If Marine outsources the production of the filter system to Bayfront, Bayfront will charge Marine $30 per filter system. Should Marine International outsource the production of the filter system to Bayfront if Marine sells 25,000 pumps a year?
Business
1 answer:
navik [9.2K]2 years ago
5 0

Answer:

Cost of in house production at 25000 units= $606250

Cost of outsourcing option at 25000 units= $750000

Thus, Marine international should produce the filter in house at a demand level of 25000 filters as the cost of in house production ($606250) is less than that of the outsourcing option ($750000).

Explanation:

To decide whether to outsource or not will depend on the total cost of each option incurred under certain production or demand level. The option providing the lowest total cost at that level will be chosen.

We first need to determine the cost of each option and see where the total cost for each item equates.

Cost of in house production = 300000 + 12.25x

Where, x is the number of units.

Cost of in house production = 300000 + 12.25 (25000)

Cost of in house production = $606250

Cost of outsourcing option = 30x

Cost of outsourcing option = 30 (25000)

Cost of outsourcing option = $750000

Thus, Marine international should produce the filter in house at a demand level of 25000 filters as the cost of in house production ($606250) is less than that of the outsourcing option ($750000).

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Novay_Z [31]

Answer:

See the explanation for the answer.

Explanation:

1. Village Volvo’s service package involves following 5 service package:-

a) Implicit Service:-Mechanics of Volvo provides very friendly environment with positive attitude. They acts as helping hand to customers by providing them advice/consultancy.

b)  Explicit Service:-Volvo provide high quality of repair services with a reasonable price thereby ensuring that all Volvo vehicles are running smoothly with no problems.

c)   Facilitating goods:-They provide good waiting area for their customers with services such as TV, coffee, soft drink machine newspaper.

d)  Supporting facility: - They occupy new building and keep it neat and clean. This building include all facilities as per requirement.

e)  Information:-Mechanic understand vehicle’s problem first, analyze solution and notify customer with estimated cost and time required.

2. Distinctive characteristics of a service firm illustrated by Village Volvo are:-

a)  Trust

b)  Customer comfort and satisfaction

c)  Respect

3. Village Volvo can manages its back office like a factory by adoption framework of quality management i.e

a)  Giving more importance to safety of its employees.

b)  Stressing more on security of its employees

c)  Create friendly environment for employees to work in and provide employee satisfaction.

d)  Provide a sustainable growth.

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3 0
2 years ago
The phenomenon that magnifies the variability in order quantities for goods as orders move through the supply chain from the cus
AleksandrR [38]

Answer:

The answer is letter A, True.

Explanation:

In order to understand the answer better, let's get to know what a bullwhip effect is in a supply chain.

Supply Chain- this is defined as a network of all the individuals, organizations,resources, technology and activities involved in the creation and sale of a product. This starts from the delivery of the source materials from the supplier to the manufacturer up to the delivery to the end user.

Bullwhip effect- <em>this is considered to be a phenomenon of variability magnification. </em>The view moves from the customer to the producer of the supply chain. Thus, the answer is letter A.

<u>Additional Information</u>

The bullwhip effect occurs when the <em>changes in consumer demands cause the companies to order more goods to meet the new demand.</em> This affects the expectations around it, causing a domino effect along the supply chain.

This effect can be prevented by having a clear communication between suppliers and customers. This will allow suppliers to prevent the occurrence of increase cost that will affect the overall supply chain.

3 0
2 years ago
Which best compares and contrasts Business Financial Management and Insurance Services?
Nikolay [14]
I believe the answer is A.) <span>Both jobs require workers to have math skills for calculating risk, while Business Financial Management also requires workers to understand advanced mathematic calculations.
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3 0
2 years ago
Read 2 more answers
Midyear on july 31st, the digby corporation's balance sheet reported: total liabilities of $51.391 million total common stock of
lys-0071 [83]

We can calculate total assets by accounting equation, which is total assets equal to total liabilities plus total equity. Using the basic accounting equation:

Total assets = Total liabilities + shareholders’ equity

= total liabilities + ( total common stock + Retained earnings)

= $51.391 million + ($2.540 million + 18.432 million)

= $72.363 million

Therefore, total assets of the firm would be $72.363 million.

8 0
2 years ago
Condelezza Co. manufactures two products, A and B, in two production departments, Assembly and Finishing. Condelezza Co. expects
Naddika [18.5K]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Condelezza Co. expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year.

Budgeted factory overhead costs for the coming year are:

Assembly $310,000

Finishing 240,000

Total $550,000

The machine hours expected to be used in the coming year are as follows:

Assembly Dept.

Product A 15,100

Product B 4,900

Total 20,000

Finishing Dept.

Product A 9,000

Product B 11,000

Total 20,000

A) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 550,000/40,000= $13.75 per machine hour

B) Departamental rates:

Assembly= 310,000/20,000= $15.5 per machine hour.

Finishing= 240,000/20,000= $12 per machine hour.

5 0
2 years ago
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