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Leonards company purchases a window hardware from Williams Hardware Co and sells to the market. Leonard is also considering manufacturing the product internally. Williams Hardware
Leonards company purchases a window hardware from Williams Hardware Co and sells to the market. Leonard is also considering manufacturing the product internally. Williams Hardware Co. charges $4 per unit, with a minimum order of 3,000 units. If Leonard manufactures the product in-home, the process setup fee could be $15,000 and then $1.82 per unit for labor and materials.
a) Draw a graph illustrating the crossover (or indifference) point.
b) Determine the number of units where either choice has the same cost.
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