Outsourcing (Make-or-Buy) DecisionAssume a division of Hewlett-Packard currently makes 8,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $33 per board, consisting of variable costs per unit of $26 and fixed costs per unit of $7. Further assume Sanmina-SCI offers to sell Hewlett-Packard the 8,000 circuit boards for $33 each. If Hewlett-Packard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett-Packard's suppliers for $29,000 per year. In addition, $3 per unit of the fixed overhead applied to the circuit boards would be totally eliminated. Calculate the net benefit (cost) to HP of outsourcing the component from Samina-SCI. Use a negative sign with your answer, if appropriate.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Outsourcing (Make-or-Buy) DecisionAssume a division of Hewlett-Packard currently makes 8,000 circuit boards per year used in producing ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A debtor and a creditor have negotiated new terms on a note. how can you determine whether the restructuring is a troubled debt restructure?
Answers (2)
Cloudlink is a file hosting service that allows users to store up to 5GB of data with no restrictions or charges. However, users have to pay a fee for advanced features on the cloud storage system and additional storage space.
Answers (1)
The Coase theorem states that a. in the absence of transaction costs, private parties can solve the problem of externalities on their own. b. subsidies are an efficient way for governments to remedy positive externalities. c.
Answers (1)
Its important to keep focused on the goals of your mission statement; no one but you can measure your A. profit margin. B. overall growth. C. success in 4. D. record-setting sales.
Answers (1)
It is more secure to combine steganography with cryptography. a. True b. False
Answers (1)
New Questions in Business
In what countries is it important to keep a certain distance from the person you are greeting?
Answers (1)
If a company is using the accrual basis accounting method, when should it record its earned revenue? a. when cash is received, even though services may be rendered at a later date b.
Answers (1)
The primary difference between a podcast and a webinar is : Group of answer choices podcasts require more preparation. a webinar is akin to an online radio show. webinars are easier to optimize for search engines.
Answers (1)
Following is a bank reconciliation for Zocar Enterprises for June 30, 2018. Cash Account Bank Statement Balance as of 6/30/2018 $1,918 $3,000 Deposit in transit 600 Outstanding checks (1,507) Note collected by bank 2,000 Bank service charge (25) NSF
Answers (1)
The sales department of a consumer products organization realized that its rivals were adopting new customer relationship management software to keep better track of their prospects.
Answers (1)