Business, 26.09.2019 22:20 staciagirl6672

Alarge global automobile manufacturer is considering outsourcing the manufacturing of a solenoid used in the transmission of its suvs. the company estimates that annual fixed costs of manufacturing the part in-house, which includeequipment, maintenance, and management, amounts to $6.1 million. the variable costs of labor and material are $8.50 per unit. the company has an offer from a major subcontractor to produce the part for$11.50 per unit. however, the subcontractor wants the company to share in the costs of the equipment. the automobile company estimates that the total cost would be $3.9 million, which also includes management oversight for the new supply contact. a. how many solenoids would the automobile company need per year to make the in-house option leastcostly? the company must consume (more than or less than) solenoids to make the manufacturing the part in-house option least costly. (enter your response rounded to the nearest whole number.)b. what other factors, besides costs, should the automobile company consider before revising its supply chain for suvs?

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