Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in house using either Process A or Process B or purchased from a supplier. For what levels of demand should each process be chosen? A B с D E Fixed Cost Variable Cost per unit Process A $8,000 $10 Process B $20,000 $4 From 0-800 Supplier, From 800 to 2000 Process A, From 2000 to infinity Process B From 0-800 Process A, From 800-2000 Process B, From 20000 to infinity Supplier From 0-2000 Supplier, From 2000 to infinity Process B, and Never Process A Supplier $0 $20 From 0-2000 Process A, From 2000 to infinity Process B, and Never Supplier Always use Supplier, Never use Process A, Never use Process B

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in
house using either Process A or Process B or purchased from a supplier. For what levels of demand should each process be chosen?
O
O
Fixed Cost
Variable Cost
per unit
Process A
$8,000
$10
Process B
$20,000
$4
A From 0-800 Supplier, From 800 to 2000 Process A, From 2000 to infinity Process B
Supplier
$0
$20
B From 0-800 Process A, From 800-2000 Process B, From 20000 to infinity Supplier
C From 0-2000 Supplier, From 2000 to infinity Process B, and Never Process A
D From 0-2000 Process A, From 2000 to infinity Process B, and Never Supplier
E Always use Supplier, Never use Process A, Never use Process B
ד ח
Transcribed Image Text:Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in house using either Process A or Process B or purchased from a supplier. For what levels of demand should each process be chosen? O O Fixed Cost Variable Cost per unit Process A $8,000 $10 Process B $20,000 $4 A From 0-800 Supplier, From 800 to 2000 Process A, From 2000 to infinity Process B Supplier $0 $20 B From 0-800 Process A, From 800-2000 Process B, From 20000 to infinity Supplier C From 0-2000 Supplier, From 2000 to infinity Process B, and Never Process A D From 0-2000 Process A, From 2000 to infinity Process B, and Never Supplier E Always use Supplier, Never use Process A, Never use Process B ד ח
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ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing