my problem is number 9, please compute so I will be able to understand this prob
ID: 346515 • Letter: M
Question
my problem is number 9, please compute so I will be able to understand this problem, thank you.
e marketing department forecasts that the up- coming year's demand will be 5,500 parts. A new supplier offers to make the parts for $158 each. Should the company accept the offer? If so, how much can they save c. What is the maximum price per part the manu- facturer should be willing to pay to the supplier if the forecast is 5,500 parts, using the information in the original problem (question 7)? A university currently has a recycling program for paper waste. The fixed cost of running this program is $10,000 per year. The variable cost for picking up and disposing of each ton of recyclable paper is $40. If the work is outsourced to a recycling company, the cost would be $65 per ton. a. If the forecasted demand is 275 tons, what 9., should the university do b. Find the break-even point. c. If the university recycles 200 tons each year, what should it do? 10. Research and find a value chain integrator in a oods- or service-focused value chain and writea short paper (maximum of two typed pages) on how it does its job within the supply chain. What value Bookmaster Case Study "I'm going to Bookmaster to buy a book," Drew yelled as he walked out of his apartment. "I'll be back in about an hour," he continued, as his roommate lay on the sofa after a hard night of partying. As he drove to the book- he caught a red stoplight at the first highway in-Explanation / Answer
We have following information:
F = fixed costs = $10,000
S = Sales Price or outsourcing cost = $65 per ton
V = variable costs = $40 per ton
a. Total cost for forecasted demand of 275 tons
Total cost (if university recycling the paper waste) = Total Fixed cost + Total variable cost
=Total fixed cost + variable cost per ton * forecasted demand
= $10,000 + $40 * 275
= $21,000
Total cost (if recycling the paper waste outsourced) =
= Outsourcing cost per ton * forecasted demand
= $65 * 275
= $17,875
As the total cost is less for Outsourcing recycling the paper waste, therefore university should outsource it.
b. The Break-even point in units Q = F/ (S-V)
Therefore,
The Break-even point in units Q = $10,000/ ($65 - $40) = 400 tons
c. If the forecasted demand is 200 tons, the university should outsource it because it is below the break-even point.
Let’s see total cost calculation also
Total cost (if university recycling the paper waste) = Total Fixed cost + Total variable cost
=Total fixed cost + variable cost per ton * forecasted demand
= $10,000 + $40 * 200
= $18,000
Total cost (if recycling the paper waste outsourced) =
= Outsourcing cost per ton * forecasted demand
= $65 * 200
= $13,000
As the total cost is less for Outsourcing recycling the paper waste, therefore university should outsource it.
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