The cost and quality implications of Ski Pro’s manufacturing decisions on its core products
1. Introduction
Ski Pro Corporation is a publicly traded company that designs, manufactures, and sells winter sports equipment. The company’s products include skis, snowboards, bindings, and related accessories. Ski Pro sells its products through a network of authorized dealers and distributors in the United States and internationally.
2. The cost workings of Ski Pro Corporation
The cost workings of Ski Pro Corporation can be divided into two parts: the manufacturing costs and the marketing costs. The manufacturing costs include the materials costs, the labor costs, and the overhead costs. The marketing costs include the advertising expenses, the promotion expenses, and the selling expenses.
3. The impact of buying bindings on the variable costs per pair of skis
If Ski Pro Corporation decides to buy bindings from a supplier, the variable costs per pair of skis will increase by $4. In addition, buying bindings from a supplier will also have an impact on the quality control of the bindings, as well as on the flexibility of the bindings.
4. The implications of Ski Pro’s manufacturing decisions on the company’s core products
If Ski Pro decides to manufacture its own bindings, it will have more control over the quality of the bindings. In addition, manufacturing its own bindings will give Ski Pro more flexibility in terms of design and functionality. However, manufacturing its own bindings will also increase the fixed costs of production.
5. Conclusion
The decision of whether or not to buy bindings from a supplier is a complex one that must take into account many factors, including cost, quality control, flexibility, and impact on the company’s core products.