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Paragraph Styles ron Question 2:|Messi's Manufacturing in Atlanta is considering outsourcing a component from an offshore company. The company has collected the following data to make an economic decision. Cost to make it in-house = $96 per unit. Annual Demand 500,000 units Price quoted by the Asian company = $90 per unit plus a shipping cost of $20,000 per shipment. Determine the number of shipments per year that the company can require the supplier to make in order to justify outsourcing. In addition to cost consideration, what other factors would weigh in decision making?

 

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