Efficiency & Cost of Production IP3

Jan 20th, 2015
Business & Finance
Price: $25 USD

Question description

1,200–2,000 words, including research in essay format

Production Manager at AutoEdge, Sam Busch, is new to the company. He asks to meet with you to discuss some questions he has.

"Thanks for meeting with me on such short notice," he says. "I'm still getting familiar with the situation here, and I could use your help."

"Certainly," you say. "And congratulations on your new position with AutoEdge."

"Thanks," he says. "I am preparing for a presentation to the board in 2 weeks. I've reviewed the most recent production reports, and I see that we are currently producing an engine part, for example, in South Korea for $110. This cost is much lower compared to the cost of producing the same part in the United States, which is $320 per unit. The disparity might be attributed to the cost of labor, unions, overhead, and operating costs."

"That makes sense," you say.

"If we return the manufacturing operations to the United States," he says, "what types of short-term and long-term variable and fixed costs should we consider? What costs should we expect if we stay in South Korea? What financial risks are the company and the stakeholders exposed to?"

"Those are all good questions," you say. "Can I give this some thought and get back to you?"

"Sure," he says. "I'll be working on my presentation next week. I'd like to get your opinion about these questions and the supporting research so I can include it."

"That works for me," you say. "Glad I can help."

Tutor Answer

(Top Tutor) Daniel C.
School: UT Austin

Studypool has helped 1,244,100 students

Review from our student for this Answer

Jan 23rd, 2015
"Excellent job"
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1819 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors