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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 $168,940 and a variable cost of $5 per unit, and the other would have an annual fixed cost of $193,351 and a variable cost of $4 per unit. Determine the range of annual volume for which each of the alternatives would be best. (Round your answer to the nearest whole number.)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92022684

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