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Best Plastics produces a line of cell phone covers. Its best-selling cover is the Cobra model, a slim but very durable black plastic cover. The

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Best Plastics produces a line of cell phone covers. Its best-selling cover is the Cobra model, a slim but very durable black plastic cover. The annual fixed cost for the Cobra model is $234,000. This fixed cost includes management time, advertising, and other costs. In addition, the variable cost, including labor and material costs, is $2 for each unit produced. Best Plastics is considering outsourcing the production of the Cobra model. Best Plastics had a bid from an outside firm to produce the Cobra for $3.50 per unit. Although it is more expensive per unit to outsource, the fixed cost can be avoided if Best Plastics purchases rather than manufacturing the product. The exact demand for next year is not known. Best Plastics wants to analyze costs for the two options (produce in-house vs. outsource) against different quantities. Dene \"q\" as the quantity (number of units) required next year. Define TMC(q) as the total cost to manufacture q units. Define TPC(q) as the total cost to purchase q units. Write the algebraic equations for TMC(q) and TPC(q). Define 5(q) as the saving from outsourcing q units, that is, TMC(q) TPC(q). Write the algebraic equation for 5(q}

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