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Business, 19.11.2019 02:31 chaosdamax8295

Outsourcing (make-or-buy) decisionassume a division of hewlett-packard currently makes 8,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $33 per board, consisting of variable costs per unit of $26 and fixed costs per unit of $7. further assume sanmina-sci offers to sell hewlett-packard the 8,000 circuit boards for $33 each. if hewlett-packard accepts this offer, the facilities currently used to make the boards could be rented to one of hewlett-packard's suppliers for $29,000 per year. in addition, $3 per unit of the fixed overhead applied to the circuit boards would be totally eliminated. calculate the net benefit (cost) to hp of outsourcing the component from samina-sci. use a negative sign with your answer, if appropriate.

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Outsourcing (make-or-buy) decisionassume a division of hewlett-packard currently makes 8,000 circuit...
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