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Question content area top Part 1 Suppose that a manufacturer can produce a part for $12.00 with a fixed cost of $6000. Alternately, the manufacturer
Question content area top Part 1 Suppose that a manufacturer can produce a part for $12.00 with a fixed cost of $6000. Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $15.00, which includes transportation.
a. If the anticipated production volume is units, compute the total cost of manufacturing and the total cost of outsourcing.
b. What is the best decision?
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