1 Aurora 3 Parameters 4 Fc (Fixed cost of manufacturing) 5 vC (Per unit variable
ID: 3226016 • Letter: 1
Question
1 Aurora 3 Parameters 4 Fc (Fixed cost of manufacturing) 5 vC (Per unit variable of manufacturing) 4.5 6 P (per unit variable cost of purchasing) 8 Model 9 q (Quantity) 10000 10 TMC Total cost to produce) 11 TPC (Total cost to outsource) 60,000 12 Savings due to outsourcing 13 24. Refer to Exhibit 10-2. The total cost for producing q units of the calculator TMCOq can be written as a. TMC(a) FC VC 36 so zar Answer: B 25. Refer to Exhibit 10-2. The formula corresponding to the total cost for outsourcing (pur- chasing) q units of the calculator-TPC(q) placed in cell B11 would be B6xB9 of oust sour B4 B6xB9 B4xB9 B6 B4xB9 B6xB9 Answer: A 26. Refer to Exhibit 10-2. For the DT920P calculator, if Aurora would like to manufacturer 10,000 units, what will be the value for B10 (TMC)? a. $105,000.00 b. $365,004.50 S410,000.00 c. d. $425,000.00 Answer: C 27. Refer to Exhibit 10-2. For the DT920P calculator, if Aurora would like to purchase 10,000 units, what will be the TPC?Explanation / Answer
1) Correct answer is B. Total manufactring cost = FC + variable cost* no. of units produced.
2) Correct answe is A. B6* B9 . Total outsourcing cost = no. of units outsourced* per unit cost of outsourcing
3) TMC = 365000+10000*4.5 = 410000. Hence, C is the correct answr
4) Total purchase cost =B6*B9 = 6*10000=60000. hence,A is the correct answer
5) Savings due to outsourcing is B10- B11 = 410000-60000 = 350000. Hence, D is th correct answer
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