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A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $10 each or to produce them in-house. Either of two processes could be used for in-house production; Process A would have an annual fixed cost of $170,000 and a variable cost of $6 per unit, and Process B would have an annual fixed best. (Round your first answer to the nearest whole number. Include the indifference value itself in this answer.)
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