A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-house. Either of two processes could be used for in-house production; one would have an annual fixed cost of $178,012 and a variable cost of $5 per unit, and the other would have an annual fixed cost of $197,926 and a variable cost of $4 per unit. Determine the range of annual volume for which each of the alternatives would be best. (Round your answer to the nearest whole number.)is best. For larger quantities, best to produce in house at $ per unit.A firm plans to begin production of a new small appliance. The manager must decide whether to purchasethe motors for the appliance from a vendor at $7 each or to produce them in-house. Either of…
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