Uploaded by Hoàng Nguyễn Kim

5

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5.7
An assembly chart for the eye-glasses is shown below:
5.13
EMV (Low-Tech) = 0.2 ($155,000) + 0.5 ($145,000) + 0.3 ($135,000) = $144,000
EMV (Sub-Contract) = 0.7 ($155,000) + 0.2 ($145,000) + 0.1 ($135,000) = $151,000
EMV (High-Tech) = 0.9 ($155,000) + 0.1 ($145,000) = $154,000
 Since the question tells us to select the option with the lowest EMV, we will go with the Low-Tech solution.