Illustrate what option should be chosen if monthly demand

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Q. Samuelsson Industries can produce its own motors for a $60,000 fixed monthly cost and a $50 variable cost per unit. Alternatively, Samuelsson Industries can purchase motors from an outside supplier for $50,000 per month and $58 per unit. Illustrate what option should be chosen if monthly demand is 1200 units?

Reference no: EM1374761

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