Shuzworld Suitable Method for Production of Sneakers
Shuzworld has given been given the go-ahead to produce Samba Sneakers by the marketing team. These brightly-colored sneakers will be aimed at teens and pre-teens and have colorized rubber soles. There are 3 options available for the production of the sneakers. They include using reconditioned equipment, purchasing new equipment in its Shanghai plant, or outsourcing to another manufacturing operation. The following is an analysis of the 3 options in order to determine the one which minimizes cost while at the same time maximizes the profits. The reconditioning option requires Fixed Costs of $ 50,000 and Variable Costs of $ ...
