3.4 TDTech is a manufacturer of portable 3D scanners. Each unit of the scanner is equipped with...

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3.4 TDTech is a manufacturer of portable 3D scanners. Each unit of the scanner is equipped with a tripod and requires 10 worker hours to produce. The company has 50 hourly employees. Each of them can work a maximum of 160 h/month. The average hourly pay is $22per employee. The material cost for producing one unit of scanner (including the tripod) is $500. The company is now considering purchasing the tripod from a supplier at a cost of $70 each. This would reduce the material cost for producing one unit of scanner to $480 and cut the production time to eight worker hours. Will TDTech be better off by purchasing tripods from the supplier instead of making it in-house?

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