If Hoboken Industries is able to obtain part MR24 from an outside supplier at a unit purchase price of $17, what is the monthly usage at which it will be indifferent between purchasing and making part MR24?

The question is incomplete. The complete question is as follows,

Hoboken Industries currently manufactures 30,000 units of part MR24 each month for use in production of several of its products. The facilities now used to produce part MR24 have a fixed monthly cost of $150,000 and a capacity to produce 84,000 units per month. If the company were to buy part MR24 from an outside supplier, the facilities would be idle, but its fixed costs would continue at 40 percent of their present amount. The variable production costs of part MR24 are $11 per unit.

If Hoboken Industries is able to obtain part MR24 from an outside supplier at a unit purchase price of $17, what is the monthly usage at which it will be indifferent between purchasing and making part MR24?

The monthly usage at which the company will be indifferent between the two options is 15000 units.

Explanation:

Let x be the number of units of MR24

The equation for cost of producing MR24 internally can be written as,

Cost = 150000 + 11x

The equation for cost for the option of buying MR24 externally can be written as,

Cost = (150000 * 0.4) + 17x

Equating both the equations,

150000 + 11x = (150000 * 0.4) + 17x

150000 + 11x = 60000 + 17x

150000 - 60000 = 17x - 11x

90000 = 6x

90000 / 6 = x

x = 15000 units

The monthly usage at which the company will be indifferent between the two options is 15000 units.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

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