A company has $3$ process options with the following costs:

Process Options

A B C

fixed cost $($$$)850,000400,00080,000$

variable cost$/$unit $($$$)4919$

$1.$ Find the range of forecasted volumes where each process is optimal.

$2.$ The Point of Indifference between Process A and Process B occurs

at a total cost of $$\_\_\_\_\_\_\_\_.$

$3.$ The company has chosen process A and expects to operate at a loss

until $34,000$ units have been sold. What is the price for each unit sold?

Vindor Incorporated can purchase component J from $3$ potential suppliers. Supplier A

charges a fee of $$6\mathrm{.}25$ per component. Supplier B charges $$1400$ per order plus $$2\mathrm{.}00$

per component ordered. Supplier C charges $$4\mathrm{.}00$ per component, and requires the

buyer to pay for at least $300$ components $($even if the order size is less than $300).$

$4.$ What is the full range of order sizes where each supplier is optimal?

$5.$ Vindor decided to buy $400$ units of component J from supplier B$.$ How

much money could the company have saved if it purchased the $400$ units

from supplier C instead of supplier B$?$

$6.$ Next week supplier B will be running a $12\%$ off special. What equation

represents the new Total Cost for supplier B during the sale?

The new equation should provide a cost that is $12\%$ less than the original.

Part $1$

Part $2$