Determine the range of annual volume

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A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motor for the appliance from a vendor at ten dollars each or to produce them in-house. The in-house process would have an annual fixed cost of $320,000 and a variable cost of eight dollars per unit. Determine the range of annual volume for which each of the alternatives would be best.

Reference no: EM132807371

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