Answer Posted / ranjith.c.p.c
Optimum Technologies, Inc. provides product development and
contract manufacturing services to client companies seeking
to maximize competitive advantage through strategic
outsourcing . Through this process, companies large and
small can organize themselves to minimize costs and
maximize flexibility.
It is a hypothetical medical device company that has
developed novel technology. The intellectual property
associated with this technology is core to the company’s
existence, and is managed by the company. However, aspects
of almost every other part of the company’s operations
might be outsourced, as shown by the location of the
functions in the overlapping rings. Some operations are
outsourced in their entirety.
Optimum Technologies, Inc. provides product
development and contract manufacturing services to client
companies seeking to maximize competitive advantage through
strategic outsourcing . Through this process, companies
large and small can organize themselves to minimize costs
and maximize flexibility.
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You are required to show the effect of each of the following changes on profit and Break-Even-Volume from the information given below: Sales 50,000 units Rs. 5.00 per unit Variable cost Rs. 3.00 per unit Fixed cost Rs. 70,000 Changes: (i) Price changes by 20%. (ii) Volume decreases to 40,000 units. (iii) Variable cost increases to Rs 3.50 per unit. (iv) Fixed cost decreases by 10%.
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