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Gati Computers is planning the manufacture of a new computer for which it needs an optical mouse. The product can be produced in - house

Gati Computers is planning the manufacture of a new computer for which it needs an optical mouse. The product can be produced in-house using Process A or Process B or it can be outsourced and procured from a supplier. Cost data is as following. For what levels of demand should each process be chosen?
Fixed cost
Variable cost
Process A
80,000
100
40
Process B
Supplier
0
200

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