Calculate the maximum quantity

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Reference no: EM131874082

Question: 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 for $7.20 each or to produce them in house. There are two in house options.

Option 1 would have an annual fixed cost of $161000 and a variable cost of $5.70.

Option 2 would have an annual fixed cost of $191000 and a variable cost of $3.90.

Calculate the maximum quantity that would have the manager select purchasing the motors from the vendor.

Reference no: EM131874082

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