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Saloty Products currently outsources an electrical switch that is a component in its sprinkler systems. The switches are purchased for $28 each. The compary is
Saloty Products currently outsources an electrical switch that is a component in its sprinkler systems. The switches are purchased for $28 each. The compary is considering makang the swithes internaly and has conducted a study to determine the costs involved. The costs below are projected annual production costs Aesume that the company needs 10.000 of the swhches, which would be produced in two batches. Assume also that the company will still be operating wetein the relevert monge in Sotety decdes to make the parts under these conditions, the totol relevant costs wil be: Assume that the compory heeds 70,000 of the swhthes. which would be produced in fwo batches. Assume also that the company will still be operating whin the relevant rahge. II Safely decides to make the parts under these condrions, the total relevant costs will be 5sin500 14600
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