Firm plans to begin production of new small appliance

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A firm plans to begin production of a new small appliance. The manager has three options: Option 1: purchase the motors for the appliance from a vendor at $9 each; Option 2: produce them in house using technology A with an annual fixed cost of $60000 and a variable cost of $3 per unit; or Option 3: produce them in house using technology B with an annual fixed cost of $30000 and a variable cost of $4 per unit. The range of output for which Option 1 is best is units. The range of output for which Option 2 is best is units. The range of output for which Option 3 is best is units.

Reference no: EM132293120

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