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Bermudez - Business Analytics Excel (AutoRecovered)

The document shows the costs of producing plastic parts internally versus outsourcing for three different production quantities of 10,000, 20,000, and 30,000 units. Producing the parts internally results in higher total costs than outsourcing for all three quantities. Outsourcing provides savings of $219,000, $204,000, and $189,000 for the 10,000, 20,000, and 30,000 unit quantities respectively.

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Eunice Bermudez
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48 views

Bermudez - Business Analytics Excel (AutoRecovered)

The document shows the costs of producing plastic parts internally versus outsourcing for three different production quantities of 10,000, 20,000, and 30,000 units. Producing the parts internally results in higher total costs than outsourcing for all three quantities. Outsourcing provides savings of $219,000, $204,000, and $189,000 for the 10,000, 20,000, and 30,000 unit quantities respectively.

Uploaded by

Eunice Bermudez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Nowlin Plastics

Parameters
Manufacturing Fixed Cost $ 234,000.00
Manufacturing Variable Cost Per Unit $ 2.00

Outsourcing Cost Per Unit $ 3.50

Model
Quantity 10000

Total Cost to Produce $ 254,000.00

Total Cost to Outsource $ 35,000.00

Savings Due to Outsourcing $ 219,000.00 Althea Eunice R. Bermudez


Nowlin Plastics

Parameters
Manufacturing Fixed Cost $ 234,000.00
Manufacturing Variable Cost Per Unit $ 2.00

Outsourcing Cost Per Unit $ 3.50

Model
Quantity 20000

Total Cost to Produce $ 274,000.00

Total Cost to Outsource $ 70,000.00

Savings Due to Outsourcing $ 204,000.00 Althea Eunice R. Bermudez


Nowlin Plastics

Parameters
Manufacturing Fixed Cost $ 234,000.00
Manufacturing Variable Cost Per Unit $ 2.00

Outsourcing Cost Per Unit $ 3.50

Model
Quantity 30000

Total Cost to Produce $ 294,000.00

Total Cost to Outsource $ 105,000.00

Savings Due to Outsourcing $ 189,000.00 Althea Eunice R. Bermudez


Althea Eunice R. Bermudez
Month Revenue Cost Profit Tax
January $ 3,459,000.00 $ 3,250,000.00 $ 209,000.00 $ 146,300.00
February $ 2,873,000.00 $ 2,640,000.00 $ 233,000.00 $ 163,100.00
March $ 3,195,000.00 $ 3,021,000.00 $ 174,000.00 $ 121,800.00
April $ 2,925,000.00 $ 3,015,000.00 $ (90,000.00) $ (63,000.00)
May $ 3,682,000.00 $ 3,150,000.00 $ 532,000.00 $ 372,400.00
June $ 3,436,000.00 $ 3,240,000.00 $ 196,000.00 $ 137,200.00
July $ 3,410,000.00 $ 3,185,000.00 $ 225,000.00 $ 157,500.00
August $ 3,782,000.00 $ 3,237,000.00 $ 545,000.00 $ 381,500.00
September $ 3,548,000.00 $ 3,196,000.00 $ 352,000.00 $ 246,400.00
October $ 3,136,000.00 $ 2,997,000.00 $ 139,000.00 $ 97,300.00
November $ 3,028,000.00 $ 2,815,000.00 $ 213,000.00 $ 149,100.00
December $ 2,845,000.00 $ 2,803,000.00 $ 42,000.00 $ 29,400.00

Total $ 39,319,000.00

Average $ 3,276,583.33 $ 3,045,750.00 Althea Eunice R. Bermudez

Tax Rate 0.3


Eunice R. Bermudez

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