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Gabriela Manufacturing should decide whether to insource or outsource the new toxic-free miracle carpet cleaner which works with its Miracle Carpet Cleaning Machine. If it decides to insource the product, the procedure would acquire $320,000 of annual fixed costs and $1.60 for each unit of variable costs. If it is outsourced, a supplier has offered to make it for the annual fixed cost of $120,000 and the variable cost of $2.30 per unit in variable costs.

(Please round your responds to the nearest whole number, the tolerance is +/-1).

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M913901

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