Calculate the maximum quantity

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Reference no: EM132098295

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 for $7.50 each or to produce them in house. There are two in house options. Option 1 would have an annual fixed cost of $160000 and a variable cost of $5.50. Option 2 would have an annual fixed cost of $194000 and a variable cost of $3.70. Calculate the maximum quantity that would have the manager select purchasing the motors from the vendor.

Reference no: EM132098295

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