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Is the offer from the outside supplier financially attractive? YES or NO and Why? RECALCULATE THE UNIT COST WITH THE IMPORTANT (RELEVANT) NUMBERS
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Is the offer from the outside supplier financially attractive? YES or NO and Why? RECALCULATE THE UNIT COST WITH THE IMPORTANT (RELEVANT) NUMBERS

User Fahmi
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1 Answer

6 votes

Answer:

The answer is "No, the offer is not financially attractive".

Step-by-step explanation:

Please find the complete question and table in the attachment file.

Costs = 85 dollars

External supplier purchase costs = 101

Its external supplier's bid is not appealing financially. Since a loss of $16 per unit is going to happen. (101 - 85).

The company must produce part T6.

Note: Overhead costs shall not be considered as the cost is irrelevant because they arise even though the part T6 is produced or bought. The price is just $85.

Is the offer from the outside supplier financially attractive? YES or NO and Why? RECALCULATE-example-1
Is the offer from the outside supplier financially attractive? YES or NO and Why? RECALCULATE-example-2
User Anurag Bhalekar
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