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 $40000 and a variable cost of $4 per unit

Option 3: produce them in house using technology B with an annual fixed cost of $125000 and a variable cost of $3 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: EM132294969

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