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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 company’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 supplier’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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