LO.3 (Outsourcing) Pneu Shoe Company manufactures various types of athletic shoes. Several types require a built-in air pump. Presently, the company makes all air pumps it requires. However, management is evaluating an o?er from Ram Air Co. to provide air pumps at a cost of $3.60 each. Pneu Shoe’s management has estimated that the variable production costs of the air pump total $2.70 per unit and that the company could avoid
$27,000 per year in ?xed costs if it purchased rather than produced the air pumps.
a. If 25,000 pumps per year are required, should Pneu Shoe make them or buy them from Ram Air Co.?
b. If 60,000 pumps per year are required, should Pneu Shoe make them or buy them?
c. Assuming that all other factors are equal, at what level of production would the company be indi?erent between making and buying the pumps?
When demand is unit elastic, price elasticity of demandA. equals 1 and total revenue and price move in the samedirection.B. equals 1 and total revenue and price move in o...May 30 2018
In the process of translation, (A) A strand of mRNA is formed with nucleotide sequences complementary to those of DNA (B) Nucleotide sequences of tRNA are established...Mar 14 2018
What is the primary concept, problem or question being addressed? o Describe the position the researcher takes in addressing the concept, problem or question being addre...Feb 15 2020
INSTRUCTIONS: In this activity, you assume the role of a senator who has received a memo about the vote on a bill to eliminate super PACs. You will review arguments for a...Aug 24 2020
Which of the following issues commercial paper? depository institutions U.S. government banks business firms and institutions Click if you would like to Show Work for thi...Aug 19 2020
A 120 V rms 60 Hz voltage is to be rectified with a full wave(a) Make a rough estimate of the average current.A 120 V rms 60 Hz voltage is to be rectified with a full waveFeb 01 2020
2. What are some of the major assets of mechanical fasteners?May 19 2020
Ztables and GRE/GMAT/LSAT Scores, assignment helpPlease help this needs to be in simple terms like I am explaining to a complete noviceDiscussionIn this unit, you will in...Apr 02 2020
11) An alcohol that is 100 proof contains ________% alcohol.A) 50B) 75C) 100D) 15012) Blood alcohol concentration is the ratio of alcohol toA) stroke volume.B) total bloo...Jan 09 2020
1. At a speed of 90 fpm, feed of 0.030 ipr, and depth at 0.625, calculate the input parameters for a lathe if the diameter to be machined (bored) is 6 in. Find the rpm (N...May 19 2020