Include a screen shot of an excel workbook and any related formulas please :) FA
ID: 3816651 • Letter: I
Question
Include a screen shot of an excel workbook and any related formulas please :)
FAE Technologies is deciding whether it should begin production of a new toy robot. It has manufactured children's toys before but nothing as advanced as its latest robot so historical data is at a minimum. the company believes that they can secure the materials for manufacture for between $65-85 per unit and labor costs would be between $15-25 per unit. Management's expectations are that materials will cost $70 per unit and labor $25 per unit and that 800 units will be sold monthly. Should FAE decide to manufacture the robots in-house, maintenance of the factory machine would cost $15,000 per month. However, management has found that another alternative is for the company to outsource the labor for a flat rate of $35 per unit. the company expects to sell between 750-1000 units per month initially at a price of $149. Provide recommendations for FAE technologies that will maximize profit. Also, include base, worst, and best case scenario calculations and provide a scenario summary. Be sure to also consider the outsourcing alternative and make a recommendation on which alternative has the most profit potential. Lastly, include a breakeven number of units sold for the worst-case without outsourcing.Explanation / Answer
The question is vague but still outsourcing would reduce the further labout cost , maintainence. For this scenario, outsourcing would be the Good option since hough being 10$ more, it would overall cost less, when considering factor installables, and maintainence.