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Item16 Item 16 Given the following data, determine the total annual cost of making with each of process A and B and of buying. Estimated
Item16 Item 16 Given the following data, determine the total annual cost of making with each of process A and B and of buying. Estimated demand is 15,500 units a year. Make Process A Process B Buy Variable cost per unit $ 47 $ 49 $ 48 Annual fixed cost $ 46,000 $ 39,000 Transportation cost per unit $ 3 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
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