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Cameron University Operations And Supply Chain Management Assignment Help - Roaming Bicycle

Question - Exercises: 13-8 Roaming Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Roaming produces and sells only 6,000 bikes each year. Due to the low volume of activity, Roaming is unable to obtain the economies of scale that larger producers achieve. For example, Roaming could buy the handlebars for $35 each; they cost $38 each to make. The following is a detailed breakdown of current production costs. Item Unit Cost Total Unit-level costs Materials $ 18 108,000 Labor 12 72,000 Overhead 3 18,000 Allocated facility-level costs 5 Total $ 38 $ 228,000 After seeing the figures, Roaming's president rem ...Read More

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