(Solved by Humans)-Assume that a manufacturer can purchase a needed component from a

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Type of Paper:

Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

Question

  1. Assume that a manufacturer can purchase a needed component from a supplier at a cost of $8 per unit, or it can invest $40,000 in equipment and produce the item at the cost of $5.50 per unit.
  2. Determine the quantity for which total costs are equal for the make and buy alternatives.
  3. What is the minimum cost alternative if 15,000 units are required? What is the minimum cost?


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