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Stan Fawcett's company is considering producing a gear assembly that it now purchases form Salt Lake Supply, Inc. Salt Lake supply charges $4 per unit with a minimum order of 3,000 units. Stan estimates that it will cost $15,000 to setup the process and then $ 1.82 per unit for labor and materials. Determine the number of units where either choice has the same cost.

Operation Management, Management Studies

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