Business, 01.02.2021 22:10, carelee9449

You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this part in-house. You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment. Cost information for these two options is as follows: ALTERNATIVE Special-Purpose Equipment General-Purpose Equipment FIXED COST $200,000 per year $50,000 per ye ar VARIABLE COST $15 per unit $20 per unit Use Scenario 2.6 to solve this mystery. At an annual requirement of 40,000 units, what does the company save per year by selecting the low-cost option? A. $40,000
B. $50,000
C. $150,000
D. $300,000

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You currently purchase a part used in your production process from an outside supplier, and have dec...