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Alieia Boat Company manufactures 1 0 luxury yachts per month. A navigation system is included in each yacht. Alieia Boat manufactures the navigation system in
Alieia Boat Company manufactures luxury yachts per month. A navigation system is included in each yacht. Alieia Boat manufactures the navigation system in house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $ and the fixed costs are $ per month. If it outsources the security system, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $ per month of rental income. What is the maximum contract cost that Alieia should pay for outsourcing? A any cost lower than $ per unit B any cost lower than $ per unit C any cost lower than $ per unit D any cost lower than $ per unit
Alieia Boat Company manufactures luxury yachts per month. A navigation system is included in each yacht. Alieia Boat manufactures the navigation system in house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $ and the fixed costs are $ per month. If it outsources the security system, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $ per month of rental income. What is the maximum contract cost that Alieia should pay for outsourcing?
A any cost lower than $ per unit
B any cost lower than $ per unit
C any cost lower than $ per unit
D any cost lower than $ per unit
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