Question

A jacket manufacturing company is considering making the zippers or purchasing them from another company. If you buy them, it will be for a price of €0.80 per unit. Manufacturing them would entail fixed costs of €30,000 and a variable cost of €0.20 per zipper. It is asked: Assuming that you manufacture 75,000 jackets, up to what purchase price will it be more profitable to buy the zippers? 45,000 euros 35,000 euros 37,500 euros

197

likes
987 views

Answer to a math question A jacket manufacturing company is considering making the zippers or purchasing them from another company. If you buy them, it will be for a price of €0.80 per unit. Manufacturing them would entail fixed costs of €30,000 and a variable cost of €0.20 per zipper. It is asked: Assuming that you manufacture 75,000 jackets, up to what purchase price will it be more profitable to buy the zippers? 45,000 euros 35,000 euros 37,500 euros

Expert avatar
Gene
4.5
108 Answers
To determine the purchase price up to which it is more profitable to buy the zippers rather than manufacture them, we compare the total cost of manufacturing the zippers in-house with the total cost of purchasing them.

1. The total cost to manufacture zippers for 75,000 jackets is:
\text{Total Manufacturing Cost} = \text{Fixed Costs} + (\text{Variable Cost per Zipper} \times \text{Number of Jackets}) = 45,000 \text{ euros}

2. The total cost to purchase zippers for 75,000 jackets at €0.80 per unit would be:
\text{Total Purchase Cost} = \text{Purchase Price per Zipper} \times \text{Number of Jackets} = 0.80 \times 75,000 = 60,000 \text{ euros}

3. To find the purchase price per zipper for equal cost-effectiveness, set the total manufacturing cost equal to the total purchase cost:
45,000 = P \times 75,000

4. Solve for P to find the purchase price per zipper:
P = \frac{45,000}{75,000} = 0.60 \text{ euros}

Therefore, up to a purchase price of €0.60 per zipper, it is more profitable for the company to buy the zippers rather than manufacture them.

\boxed{P = 0.60 \text{ euros}}

Frequently asked questions (FAQs)
What is the measure of angle B in triangle ABC if angle A measures 50 degrees and angle C measures 70 degrees?
+
What is 3/5 of 80?
+
What is the congruence rule for right-angled triangles?
+
New questions in Mathematics
2x-y=5 x-y=4
3(4×-1)-2(×+3)=7(×-1)+2
If f(x) = 3x 2, what is the value of x so that f(x) = 11?
what is the annual rate on ​$525 at 0.046​% per day for 3 months?
9b^2-6b-5
2.3/-71.32
A construction company is working on two projects: house construction and building construction. Each house requires 4 weeks of work and produces a profit of $50,000. Each building requires 8 weeks of work and produces a profit of $100,000. The company has a total of 24 work weeks available. Furthermore, it is known that at least 2 houses and at least 1 building must be built to meet the demand. The company wants to maximize its profits and needs to determine how many houses and buildings it should build to meet demand and maximize profits, given time and demand constraints.
According to a survey in a country 27% of adults do not own a credit card suppose a simple random sample of 800 adults is obtained . Describe the sampling distribution of P hat , the sample proportion of adults who do not own a credit card
solve for x 50x+ 120 (176-x)= 17340
The cost of unleaded gasoline in the Bay Area once followed an unknown distribution with a mean of $4.59 and a standard deviation of $0.10. Sixteen gas stations from the Bay Area are randomly chosen. We are interested in the average cost of gasoline for the 16 gas stations. 84. Find the probability that the average price for 30 gas stations is less than $4.55. a 0.6554 b 0.3446 c 0.0142 d 0.9858 e 0
In the telephone exchange of a certain university, calls come in at a rate of 5 every 2 minutes. Assuming a Poisson distribution, the average number of calls per second is: a) 1/8 b) 1/12 c) 1/10 d) 2/5 e) 1/24
A circular window has a rubber molding around the edge. If the window has a radius of 250 mm, how long is the piece of molding that is required ? (To the nearest mm)
0.1x8.2
If the regression equation is given by 4x –y + 5 = 0, then the slope of regression line of y on x is
Determine a general formula​ (or formulas) for the solution to the following equation.​ Then, determine the specific solutions​ (if any) on the interval [0,2π). cos30=0
Determine the Linear function whose graph passes through the points (6, -2) and has slope 3.
5a-3.(a-7)=-3
2p-6=8+5(p+9)
Mark is gluing a ribbon around the sides of a picture frame. The frame is 11 inches long and 7 includes wide. How much ribbon does Mark need?
x(squared) -8x=0