White & Checker is releasing a new power drill that requires the manufacturing of a new part.They are considering whether they should manufacture the part in-house or outsource it from a supplier.The demand forecast is 1,355 units.They calculate the break-even quantity as 1,750 parts.What decision should White & Checker make?
A) The product should not be released,as the demand is not high enough.
B) A percentage of the product should be manufactured in-house,and the rest should be outsourced.
C) The part should be outsourced.
D) The part should be manufactured in-house.

Question

Quizplus · Accepted Answer

The demand forecast of 1,355 units is less than the break-even quantity of 1,750 parts, indicating that manufacturing in-house would not be cost-effective. Therefore, outsourcing the part is the better decision.

White & Checker Is Releasing a New Power Drill That