Companies often consider buying the parts for the products they make or making the parts they buy.List the factors management should consider when looking into making a part they have been purchasing.
The following information relates to the purchase of new machine being considered. The new machine would enable the company to make 13,500 units per year.The current capacity of 12,000 is based on the maximum number of units that the old machine can produce.The company has had to turn down orders in the past few years due to this limit on capacity and estimates that it can sell as many of the product as it can produce.The sales price per unit of the product is $34.50.Determine the relevant data.Pose one addition consideration regarding this decision.
Tyro Manufacturing has a machine that requires frequent repairs.Production is stopped and as a result some shipment dates have not been met.The manager read in their industry's trade magazine about a new machine that has just been developed.Using the given headings,list the six steps of the decision-making process.Relate each of the first five to this specific situation using the format provided.
McAdd Industries is considering whether to continue making part MPG 411 or buying the part from a supplier.The supplier can sell the needed number of parts (47,000 projected)to McAdd for an amount that is above the company's current cost to manufacture it.If McAdd decides to purchase the parts from its supplier,it will be able to reconfigure the manufacturing floor in order to allow increased production of 50 of its product for an increased contribution margin of $17,000 for the year.The old machine has a book value of $39,000,and can be sold for $4,000. Discuss this situation.What are the considerations?