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A manufacturing company is considering outsourcing its distribution operations to a third-party provider. The outsourcing company offers two pricing plans: Plan P charges a fixed

A manufacturing company is considering outsourcing its distribution operations to a third-party provider. The outsourcing company offers two pricing plans: Plan P charges a fixed fee of $100,000 per month, and Plan Q charges a variable fee of $0.15 per unit distributed. If the company expects to distribute 400,000 units per month, which plan should it choose to minimize costs?

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