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Stan's company is considering producing a gear assembly that it now purchases from Sal Company. Salt company charges 4 per unit with a minimum order of 3000 units. Stan estimates that it will cost 15000 to set up the process and then 1.82 per unit for labour and materials 1. Draw a graph illustrating the crossover point. 2. Determine the number of units where either choice has the same cost. Please explain in detail
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2. You have been assigned to make a long-term sourcing decision for a raw material you will purchase. There is only one supplier of this raw material. You estimate that you need 60
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