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)
Question: Find the domain of the function f(x) = 2sin(3x) + cos(2x) in radians.
+
What is the 3rd order derivative of f(x) = sin(2x) + cos(x) at x = π/3?
+
What is the maximum value of a quadratic equation given by f(x) = -2x² + 5x - 3?
+
New questions in Mathematics
How much volume of water in MegaLiters (ML) is required to irrigate 30 Hectare crop area with depth of 20mm?
calculate the following vector based on its base vectors a= -18i,26j
Imagine that you are in an electronics store and you want to calculate the final price of a product after applying a discount. The product you are interested in has an original price of $1000 MN, but, for today, the store offers a 25% discount on all its products. Develop an algorithm that allows you to calculate the final price you will pay, but first point out the elements.
A company is wondering whether to invest £18,000 in a project which would make extra profits of £10,009 in the first year, £8,000 in the second year and £6,000 in the third year. It’s cost of capital is 10% (in other words, it would require a return of at least 10% on its investment). You are required to evaluate the project.
A juice shop prepares assorted juices, for their juices they have 5 different types of fruit. How many types of assortments can be prepared in total, if it is considered an assortment to a juice made with two or more fruits?
Equivalent expression of the sequence (3n-4)-(n-2)
the probabilty that a person has a motorcycle, given that she owns a car 25%. the percentage of people owing a motorcycle is 15% and that who own a car is 35%. find probabilty that a person owns any one or both of those
how many arrangements can be made of 4 letters chosen from the letters of the world ABSOLUTE in which the S and U appear together
A company that manufactures personal hygiene items purchases machinery for $220,000 that is considered to last 7 years; it is estimated that at the end of the period it will have a salvage value of $1000. Find: to. The depreciation rate. b. The book value at the end of the sixth year.
How many anagrams of the word STROMEC there that do not contain STROM, MOST, MOC or CEST as a subword? By subword is meant anything that is created by omitting some letters - for example, the word EMROSCT contains both MOC and MOST as subwords.
The durability of a tire of a certain brand is a Normal random variable with an average of 64,000 km and a standard deviation of 9,000 km. Assuming independence between tires, what is the probability that the 4 tires on a car will last more than 58,000 km?
Task 1 angel has 3 quarters 3/8 of a tank of gasoline and Miguel 7/8, who has more gasoline? number line on number line
The following table shows the frequency of care for some animal species in a center specializing in veterinary dentistry. Species % Dog 52.8 Cat 19.2 Chinchilla 14.4 Marmoset 6.2 Consider that the center only serves 10 animals per week. For a given week, what is the probability that at least two are not dogs? ATTENTION: Provide the answer to exactly FOUR decimal places
19) If the temperature of -8°C decreases by 12°C, how much will it be? a)-20°C -4°C c) 4°C d) 20°C
A box of numbered pens has 12 red, 12 blue, 12 green and 12 yellow pens. The pens for each colour are numbered from 1 to 12. There is a unique number on each pen, so no pen is exactly the same as any other pen in the box. When reaching into the box to randomly draw five pens without replacement, what is the proportion of getting exactly four pens of the same colour (Note: the numbers matter but the order does not)?
30y - y . y = 144
suppose a city with population 80,000 has been growing at a rate of 8% per year if this rate continues find the population of this city in 10 years
simplify w+[6+(-5)]
2p-6=8+5(p+9)
If the area of a circle is 75.7ft2, what is the radius? Give the answer in metres. Round answer to 2 decimal places and enter the units.