Number of units where either choice has the same cost

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Reference no: EM132110962

Stan? Fawcett's company currently purchases a gear assembly from Salt Lake? Supply, Inc., at $ 4.20 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 $ 15,000 to set up the process and then $ 1.82 per unit for labor and materials.

?a) Using the line drawing? tool, add the total cost graph for Stan to produce the assembly instead of purchasing from Salt Lake Supply. Total cost for the purchase option is already plotted. Properly label your line. ?Note: if you are not prompted for a? label, you have used the wrong drawing tool.

b) determine the number of units where either choice has the same cost.

Reference no: EM132110962

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