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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 12,500

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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 12,500 units a year. The operations manager has said that it would be possible to achieve a 14 percent reduction in the fixed cost of Process B and a 14 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 $6.000 ? Yes No

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