San Diego State University Operations And Supply Chain Management Assignment Help - Equipment
Question - Bronson Company manufactures a variety of ballpoint pens. The company has just received an offer
from an outside supplier to provide the ink cartridge for the companyâ€™s Zippo pen line, at a price of
$0.48 per dozen cartridges. The company is interested in this offer, since its own production of
artridges is at capacity.
Bronson Company estimates that if the supplierâ€™s offer were accepted, the direct labor and variable
manufacturing overhead costs of the Zippo pen line would be reduced by 10% and the direct
materials cost would be reduced by 20%. Under present operations, Bronson Company manufactures
all of its own pens from start to finish. The Zippo pens are sold through wholesalers at $4 per box.
Each box contains on ...Read More
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