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Central Carolina Technical College Operations And Supply Chain Management Assignment Help - . The Hyatt Company


Question - . The Hyatt Company is trying to decide whether it should purchase new equipment and continue to
make its subassemblies internally or if production should be discontinued and the subassembly
purchased from an outside supplier. Either way production can not continue using the current
equipment. New equipment for producing the subassemblies can be purchased at a cost of $400,000.
The equipment would have a five-year useful life (the company uses straight-line depreciation) and a
$50,000 salvage value. Alternatively, the subassemblies could be purchased from an outside supplier.
The supplier has offered to provide the subassemblies for $9 each under a five-year contract. Hyatt
Company's present costs per unit of producing the subassembl ...Read More

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