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Q. tan Fawcett's Corporation is considering producing a gear assembly which it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit with a minimum order of 3000 units. Stan estimates which it will cost $15000 to set up the process also then $1.82 per unit for labour also materials. a- draw a graph illustrating the crossover (or difference) points. b- Determine the number of units where either choice has the same cost.

 

 

Operation Management, Management Studies

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