Purchase the motors for the appliance from a vendor

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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 $8 each;

Option 2: produce them in house using technology A with an annual fixed cost of $95000 and a variable cost of $2 per unit; or

Option 3: produce them in house using technology B with an annual fixed cost of $180000 and a variable cost of $5 per unit.

Reference no: EM132115295

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