Roedel Electronics produces tablet computer accessories, including integrated keyboardtablet stands that connect a keyboard to a tablet device and holds the device at a preferredangle for easy viewing and typing. Roedel produces two sizes of integrated keyboard tabletstands, a small and a large size. Each size uses the same keyboard attachment, but thestand consists of two different pieces, a top flap and a vertical stand that differ by size.Thus, a completed integrated keyboard tablet stand consists of three subassemblies thatare manufactured by Roedel: a keyboard, a top flap, and a vertical stand.Roedels sales forecast indicates that 7000 small integrated keyboard tablet stands and5000 large integrated keyboard tablet stands will be needed to satisfy demand during theupcoming Christmas season. Because only 500 hours of in-house manufacturing timeare available, Roedel is considering purchasing some, or all, of the subassemblies fromoutside suppliers. If Roedel manufactures a subassembly in-house, it incurs a fixed setupcost as well as a variable manufacturing cost. The following table shows the setup cost,the manufacturing time per subassembly, the manufacturing cost per subassembly, and thecost to purchase each of the subassemblies from an outside supplier:A) Determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. What is the total manufacturing and purchase cost associated with your recommendation?
Is this the question you were looking for? If so, place your order here to get started!