SOLVED : articlewritingcafe.net – Determine the range of annual volume for which each of the alternatives would be best/2022

SOLVED : articlewritingcafe.net –

A firm plans to begin production of a new small appliance. The manager must decide whether to purchase

the motors for the appliance from a vendor at $7 each or to produce them in-house. Either of two processes could be used for in-house production; one would have an annual fixed cost of $160,000 and a

variable cost of $5 per unit, and the other would have an annual fixed cost of $190,000 and a variable

cost of $4 per unit. Determine the range of annual volume for which each of the alternatives would be best