Aqua Ltd produces and sells wheelchairs. This year's expected production is 20,000 units. Currently, Aqua Ltd makes the chains for its wheelchairs. The management accountant of Aqua reports the following costs for making the 20,000 wheelchair chains: Aqua Ltd has received an offer from an outside vendor to supply any number of chains Aqua Ltd requires at $20 per chain. The following additional information is available: - Inspection, set-up and materials-handling costs vary with the number of batches in which the chains are produced. Aqua Ltd produces chains in batch sizes of 1,000 units. Aqua Ltd will produce the 20,000 units in 20 batches. - Aqua Ltd rents the machine used to make the chains. If Aqua Ltd buys all of its chains from the outside vendor, it does not need to pay rent on this machine. Aqua Ltd produces and sells wheelchairs. This year's expected production is 20,000 units. Currently, Aqua Ltd makes the chains for its wheelchairs. The management accountant of Aqua reports the following costs for making the 20,000 wheelchair chains: Aqua Ltd has received an offer from an outside vendor to supply any number of chains Aqua Ltd requires at $20 per chain. The following additional information is available: - Inspection, set-up and materials-handling costs vary with the number of batches in which the chains are produced. Aqua Ltd produces chains in batch sizes of 1,000 units. Aqua Ltd will produce the 20,000 units in 20 batches. - Aqua Ltd rents the machine used to make the chains. If Aqua Ltd buys all of its chains from the outside vendor, it does not need to pay rent on this machine