Determine the annual volumes where it would optimal

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Reference no: EM13821061

A manager must decide whether to buy motors for $6 or to make them in-house using Process A or Process B. A has fixed cost of $140,000 and variable cost of $4/unit while B has fixed cost of $180,000 and variable cost of $3/unit. Determine the annual volumes where it would optimal to use Process A, B or to purchase the motors. PLEASE SHOW ALL WORK!

Reference no: EM13821061

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