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Business, 12.08.2019 16:20 isiahamccoy8822

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 amount of units sold for the worst-case without outsourcing.

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