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Stan Fawcett's company currently purchases a gear assembly from Salt Lake Supply Inc, at $3.8 per unit with a minimum order of 3,000 units. Stan is considering instead producing the gear assembly himself. He estimates that producing it himself will cost $12,000 to set up the process and then $2.00 per unit for labour and materials.
a. using a draw line tool, add the total cost graph for Stan to produce the assembly instead of purchasing from Salt Lake Supply.
b. the number of units at which either choice has the same cost is_____ (round your answer to the nearest whole number).
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