Questions \#6 and \#7 are about the following situation. A large appliance manufacturer will soon begin producing a new refrigerator model that will require a unique, new part not found in the earlier models of the refrigerator. The company's marketing manager forecasts annual demand for the new refrigerator will range from 500 to 2,000 units a year. The company's operations manager is considered the following three options for obtaining the unique, new part. - Option \#1: Purchase the part from a supplier at a price of $115 each with no fixed cost. - Option \#2: Hire an outside machine shop to make the part at a cost of $10 each. The machine shop will also charge a fixed cost of $97,000 to produce the part. - Option \#3: Use existing company tools and personnel to make the part in house at a cost of $50 each with a fixed cost of $41,000. If annual demand for the new model will 2,000 units, which option for obtaining the part would result in the lowest total cost? Option \#1 Option \#3 Option \#2