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Refer to the exhibit.
A company manufactures three components on the same machine, on which there is spare capacity. An external supplier has offered to supply all of the company's requirements of the components. Data for the components are as follows:
Which components should be purchased from the external supplier?
Suggested Answer: D
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34 comments · newest first
GR
Graciela
12 months ago
I think purchasing X and Z makes the most sense!
DO
Dorsey
12 months ago
Components Y and Z have lower production costs.
JE
Jeniffer
12 months ago
Wait, are we sure about that? Seems risky.
KA
Kate
1 year ago
Totally agree, X is the way to go!
TI
Tiffiny
1 year ago
Component X has the highest cost savings.
GE
Gerald
1 year ago
I think we need to look at the variable costs for each component. If Component Y has high costs, it might be better to buy it instead.
MA
Man
1 year ago
I feel a bit uncertain about the spare capacity aspect. Does that mean we should definitely consider purchasing more components?
FA
Fanny
1 year ago
This question seems similar to one we practiced where we had to decide based on contribution margins. I think I might lean towards Components X and Z.
OM
Omega
1 year ago
I remember we discussed how to analyze the cost of manufacturing versus purchasing, but I'm not sure which components are cheaper to buy.
DE
Delpha
1 year ago
This seems like a straightforward question about email sending reputation. I think the key is to look for the option that provides the most comprehensive solution.
EL
Elenora
1 year ago
Hmm, this seems like a tricky one. I'll need to think carefully about the different points where a Security Profile can come into play.
TE
Tegan
1 year ago
I'm a little confused on this one. Is assigning to a group really the recommended approach, or is there something else I'm missing? I want to make sure I understand this properly before answering.
JA
Jacki
1 year ago
I'm going to have to go with B) Components X and Z. The numbers don't lie, and it's clear the external supplier has a significant cost advantage for those two components. Plus, it frees up the company's resources to focus on their core competencies. Now, where's the vending machine? I need a snack to fuel my brain power.
TA
Tawny
1 year ago
Let's grab a snack from the vending machine and celebrate making a strategic decision for the company.
RO
Roxane
1 year ago
I think it's a smart move to free up resources and streamline operations by purchasing Components X and Z.
LI
Lizette
1 year ago
Definitely, it makes sense to outsource those components and focus on what the company does best.
LO
Lorenza
1 year ago
I agree, B) Components X and Z seem to be the best choice based on the cost advantage.
JU
Jules
1 year ago
Hmm, this is a tough one. I'm leaning towards C) Components Y and Z, since the data shows the company has a much higher manufacturing cost for those components compared to the external supplier. But I'm curious to hear what the other candidates think. Anyone want to arm-wrestle for the right answer?
JO
Joaquin
1 year ago
D) Components X, Y and Z seems like the best option to me. Why bother manufacturing anything in-house when the external supplier can provide everything at a lower cost? Might as well go for the full outsourcing solution and focus on other parts of the business.
IV
Ivette
1 year ago
Definitely, outsourcing all components can help reduce costs and streamline operations.
BL
Blondell
1 year ago
I think it's a smart move to focus on other areas of the business and let the supplier handle the manufacturing.
WH
Whitley
1 year ago
I agree, it makes sense to outsource all three components to the external supplier.
LO
Loreen
2 years ago
I think the answer is B) Components X and Z. The data shows that the external supplier can provide the components at a lower cost than the company's manufacturing cost. It makes sense to outsource those components to take advantage of the cost savings.
TR
Tresa
1 year ago
That's a good point. It seems like the best decision would be to purchase Components X and Z from the external supplier based on the cost savings.
KR
Krissy
1 year ago
I think the data clearly shows that Components X and Z have a higher cost to manufacture internally, so it makes sense to purchase them from the external supplier.
EA
Earlean
1 year ago
But what about Component Y? Shouldn't we also consider outsourcing that to save on costs?
TO
Toshia
1 year ago
I agree, it would be more cost-effective to purchase Components X and Z from the external supplier.
GA
Gaynell
1 year ago
I see your point, it does make sense to only outsource Components X and Z based on the cost comparison provided in the data.
GE
German
1 year ago
I think the data clearly shows that only Components X and Z should be purchased from the external supplier.
RO
Ronnie
1 year ago
But what about Component Y? Shouldn't we also consider outsourcing that to save on costs?
LE
Lelia
1 year ago
I agree, it would be more cost-effective to purchase Components X and Z from the external supplier.
TE
Teri
2 years ago
I agree with Amina, purchasing Components X and Z would be more cost-effective.
AM
Amina
2 years ago
I disagree, I believe we should purchase Components X and Z.
GI
Giovanna
2 years ago
I think we should purchase Component X only.