Company A purchases a window hardware from B’s Hardware Co and sells to the market. Company A is also considering manufacturing the product internally. B’s Hardware Co. charges $4 per unit, with a minimum order of 3,000 units. If Company A manufactures the product in-home, the process setup fee could be $15,000 and then $1.82 per unit for labor and materials.
a) Draw a graph illustrating the crossover (or indifference) point.
b) Determine the number of units where either choice has the same cost.
from production and operationsCorporations2 months ago