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Given the following data, determine the total annual cost of making with each of process A and B and of buying. Estimated demand is 10.500

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Given the following data, determine the total annual cost of making with each of process A and B and of buying. Estimated demand is 10.500 units a year. Make Process A Process B Buy Variable cost per unit 19 51 Annual fixed cost 50 ,000 44 , 000 Transportation cost per unit m The operations manager has said that it would be possible to achieve a 10 percent reduction in the fixed cost of Process B and a 10 percent reduction in B's variable cost per unit. Would that be enough to change your answer if the estimated annual cost to achieve those savings was $8.000? Yes O No

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