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QUESTION 2 A firm plans to begin production of a new small appliance. The manager has three options Option 1 purchase the motors for the

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QUESTION 2 A firm plans to begin production of a new small appliance. The manager has three options Option 1 purchase the motors for the appliance from a vendor at $2 each Option 2 produce them in house using technology A with an annual fixed cost of $30000 and a variable cost of $1 per unit or Option 3 produce them in house using technology B with an annual fixed cost of $80000 and a variable cost of $2 per unit The range of output for which Option 1 is best is units The range of output for which Option 2 is best is units The range of output for which Option 3 is best is units FORMAT TO ENTER VALUES: Round to the nearest integer, no decimals Enter the range as #**###***, for example: 47500-92000 If an option is outperformed by other option(s) enter NEVER (all capital) For an open ended range use INFINITY (all capital), for example, 47500-INFINITY If an option is good only at one point, just enter the value of the output, for example 8750 DO NOT USE parentheses, spaces or commas

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