Using your favorite search engine, choose a product that you are interested in learning more about, including how the product is manufactured.

Using your favorite search engine, choose a product that you are interested in learning more about, including how the product is manufactured. After you have located information about the product, answer the following questions about it.

• What is a description of the product, and what company makes it?
• What is the process used to manufacture the product? Name the raw materials and indirect materials used in its manufacturing.
• Who would be considered direct and indirect labor in the making of this product, and why?
• Using the cost-plus pricing approach, what target selling price would you set for the product? Explain why you chose this price.
• Assume you are the owner of the company that produces the product. You have been offered the option to outsource the product’s component parts instead of making them. What cost factors would need to be considered? Does it make more financial sense to outsource these parts? Explain with examples/assumptions.
• Assume the product was being made on an old piece of machinery that is slowing down production and causing delayed completion times. You have been given the option to either buy a new replacement piece of machinery or have this current machine reworked/repaired. Which option would you chose? What factors would be considered? State all assumptions and be sure to describe how incremental analysis would be used to make this decision.

Sample Solution

Product: iPhone

1. The iPhone is a smartphone manufactured by Apple Inc. The latest model, as of my knowledge cutoff date of September 2021, was the iPhone 12 series.
2. The process used to manufacture the iPhone involves multiple stages, including the production of various components such as the casing, camera module, and display, and the assembly of these components into the final product. The raw materials used in the manufacturing of the iPhone include aluminum, glass, lithium-ion batteries, and various electronic components such as semiconductors and memory chips. Indirect materials used in the production of the iPhone include energy, water, and other utilities.
3. The direct labor in the making of the iPhone includes the assembly line workers, technicians, and engineers involved in the production process. Indirect labor would include supervisors, maintenance staff, and administrative personnel who support the production process.
4. Using the cost-plus pricing approach, the target selling price for the iPhone would include the cost of manufacturing the product plus a profit margin. Assuming a markup of 40% on the cost of goods sold (COGS), the target selling price for an iPhone 12 Pro Max with a COGS of approximately $406 would be $568.40.
5. If the option to outsource the iPhone’s component parts is being considered, the cost factors that would need to be considered include the cost of outsourcing compared to the cost of producing the parts in-house, the quality of the outsourced parts, and the lead time for receiving the parts. It may make financial sense to outsource certain component parts if the cost savings are significant, the quality is not …NEED A COMPREHENSIVE ANSWER? POST YOUR ORDER