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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 A 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 A charges a fixed fee of $150,000 per month, and Plan B charges a variable fee of $0.25 per unit distributed. If the company expects to distribute 500,000 units per month, which plan should it choose to minimize costs?

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