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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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A manufacturer concerned mainly with production efficiencies and reducing unit costs is known as Production oriented.
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