when you complete the chart, the second assigment is Jean’s Jeans Case – Instructions
Reading Margin of Safety Document below and Using the following Jean’s Jeans instructions and documents at the bottom of the page, complete the analysis of whether to make or buy your jeans:
Review the financial projections and the 8 pages of questions.
On page 5, use the milestone point and make a recommendation if you will make or buy your products?
Be sure to access the cost to acquire equipment and the cost of labor/ show your analysis and its impact on ROI.
Assumptions
You are currently buying your jeans from other manufacturers
Your analysis is for the same number of pairs bought
You will need to hire 1 (one) more person at minimum wage in Los Angeles with 40 hours per week, all taxes included.
The material cost to make one pair of jeans is $3.00 per pair
Equipment needed includes 2 sewing machines at $1000.00 each
All other expenses remain the same as you have enough space in your current building
New tariffs will add $2.00 per pair if you continue buying