A company is about to begin a production process. They plan to manufacture commercial bearings, specifically the fifth wheel for tractors. Under consideration is a manual process, computerized process, and a collaborative venture with a third party (outsourcing the metal fabrication process). The manual process has fixed costs of $45,100 per month and variable costs of $47 per unit. The computerize process has fixed costs of $129,350 per month and variable costs of $35 per unit. By outsourcing part of the process, the internal fixed costs would be reduced and projected to be $95,500 per month and have variable costs of $38 per unit. Selling price for the bearing is $147.50 Based on comparing the options:

a. At what output should the company continue to manufacture the bearings manually? [ Select ]

b. At what output does the computerized process become less expensive than considering outsourcing (collaborative venture)? [ Select ]

c. At what output does the collaborative venture make sense in terms of outsourcing part of the process? [ Select ]

d. If the forecasted demand level for the bearings was at 2800 per month, which option should be considered and what would the total cost be (based on fixed & variable cost)? [ Select ]