A firm plans to begin prodction of a new small appliance, Ask an Expert

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A firm plans to begin prodction of a new small appliance. The manager has three options: Option1: purchase the motors for the appliance from a vendor at $5 each; Option 2: produce them in house using technology Awith an annual fixed cost of $50000 and a variable cost of $4 per unit; or Option 3: produce them in house using technology B with an annual fixed cost of $75000 and a variable cost of $2 per unit. The range of output for which Option 1 is best is _______ units. The range of output for which option 2 is best it ______ units. The range of output for which Option 3 is best is ______ units.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91754312

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