The following spreadsheet shows a simple outsourcing decision model of a company that sells shoes.Use the spreadsheet to answer the question(s)below.
-What is the total manufacturing cost incurred by the company?
A)$525,000
B)$675,000
C)$600,000
D)$450,000

Question

The following spreadsheet shows a simple outsourcing decision model of a company that sells shoes.Use the spreadsheet to answer the question(s)below. 
-What is the total manufacturing cost incurred by the company?
A)$525,000 
B)$675,000 
C)$600,000 
D)$450,000

Quizplus · Accepted Answer

The best choice is to manufacture shoes in-house as it has the lowest total manufacturing cost of $525,000 compared to outsourcing, which has a total manufacturing cost of $675,000.

The Following Spreadsheet Shows a Simple Outsourcing Decision Model of a Company