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Stan's company is taking into consideration to producing a gear assembly that it now purchases from Sal Company. Salt company charges four per unit with the minimum order of 3000 units. Stan estimates that it will cost of 15000 to set up the process and then 1.82 per unit for labour and materials

1. Draw the graph illustrating the crossover point.

2. Find out the number of units where either choice has the same cost. Please discuss in detail

Operation Management, Management Studies

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