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Stan Fawcetts company is considering producing a .• 7.5 gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit, with a minimum order of 3.000 units. Stan estimates that it will cost $15,000 to set up the process 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 PX

Stan Fawcetts company is considering producing a .• 7.5 gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit, with a minimum order of 3.000 units. Stan estimates that it will cost $15,000 to set up the process 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 PX

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Stan Fawcett's company is considering producing a 7.5 Oear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit, with a minimum order of 3.000 units. Stan estimates that it will cost $15,000 to set process 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 .. up the same cost. PX
Transcribed Image Text:Stan Fawcett's company is considering producing a 7.5 Oear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit, with a minimum order of 3.000 units. Stan estimates that it will cost $15,000 to set process 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 .. up the same cost. PX
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