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 probability of drawing two red cards in a row from a standard deck of 52 playing cards?
+
What is the smallest positive integer solution to the equation x^n + y^n = z^n, where n>2 according to Fermat's Theorem?
+
What is the value of f(5) if f(x) = 2x + 3?
+
New questions in Mathematics
Pedro bought 9 kg of sugar at the price of R$1.80 per kilogram, six packets of coffee at the price of R$3.90 per packet and 8 kg of rice at the price of R$2.70 per kilogram. Knowing that he paid for the purchases with a R$100.00 bill, how much change did he receive?
A person who weighs 200 pounds on earth would weigh about 32 pounds on the moon. Find the weight of a person on earth who would weigh 15 pounds on the moon.
String x = 5 Int y=2 System.out.println(x+y)
(6.2x10^3)(3x10^-6)
The mean temperature for july in H-town 73 degrees fahrenheit. Assuming that the distribution of temperature is normal what would the standart deviation have to be if 5% of the days in july have a temperature of at least 87 degrees?
Solve this mathematical problem if 3/5 of a roll of tape measures 2m. How long is the complete roll? Draw the diagram
Subscribers to the FAME magazine revealed the following preferences for three categories: Fashion 30, Athletics 24 and Business 15. Following these frequencies of observation, compute the chi-square test statistic. At the 0.05 level of significance, would you conclude they are similar?
Find the equation of the line perpendicular to −5𝑥−3𝑦+5=0 passing through the point (0,−2)
Suppose the Golf ball market is perfectly competitive and the functions are known: Q = 120 – 2Px – 2Py 0.2I Q = 2Px 40 Where I = Consumers' income ($200) and Py = Price of Good Y (40) Calculate the equilibrium elasticity: a) 1.6 b) -6 c) 6 d) 0.6
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
Substitute a=2 and b=-3 and c=-4 to evaluate 2ac/(-2b^2-a)
A company receives sales in $20 per book and $18 per calculator. The per unit cost to manufacture each book and calculator are $5 and 4$ respectively. The monthly (30 day) cost must not exceed $27000 per month. If the manufacturing equipment used by the company takes five minutes to produce a book and 15 minutes to produce a calculator, how many books and calculators should the company produce to maximise profit? Please solve graphically and
3/9*4/8=
The points (-5,-4) and (3,6) are the ends of the diameter of the circle calculate subequation
Show work on 4108 divided by 4
(a) List the set of possible rational zeros of the polynomial function F(x) = 2x3 - 11x2 + 13x - 4. (b) Find all rational zeros of F(x). Only do part B
Give an example of a function defined in R that is continuous in all points, except in the set Z of integers.
Solve for B write your answer as a fraction or as a whole number. B-1/7=4
00 piece jigsaw puzzle. the completed puzzle is 10x10. each piech connects to at least 2 other pieces. i plan to assemble by taking pieces out of box one by one. if i've already taken out 2 pieces that dont directly connect, what is the minimum number of additional pieces that i need to draw to in order to guarentee that the original 2 pieces connect?
Construct a set of six pieces of data with​ mean, median, and midrange of 67 and where no two pieces of data are the same.