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# 5 . Suppose that a manufacturer can produce a part for $ 1 0 per unit, with a fixed cost of $ 5 ,
# Suppose that a manufacturer can produce a part for $ per unit, with a fixed cost of $ for buying a special tool. Alternatively, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $ per unit, which includes transportation.
a If the anticipated production volume is units, compute the total cost of manufacturing and total cost of outsourcing, respectively.
Show your calculations
b What is the best decision, outsourcing or not?
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