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Make or Buy Decision

NNikita5y ago
Robber Co manufactures control panels for burglar alarms, a very profitable product. Every product comes with a one-year warranty offering free repairs if any faults arise in this period. my question - While calculating Machine set-up cost they have done 500/400 instead it should be 400/500 .. please correct if I am wrong.
John MoffatJohn MoffatTutor5y ago#1
The answer is correct. Changing to a smaller batch size means that they will have to produce more batches to produce the same total quantity.
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