$2.$ A manager is trying to decide whether to purchase a certain part or to have it produced

internally. Internal production could use either of two processes. One would entail a

variable cost of $$17$ per unit and an annual fixed cost of $$200,000$; the other would entail

a variable cost of $$14$ per unit and an annual fixed cost of $$240,000.$ Three vendors are

willing to provide the part. Vendor A has a price of $$20$ per unit for any volume up to

$30,000$ units. Vendor B has a price of $$22$ per unit for demand of $1,000$ units or less, and

$$18$ per unit for larger quantities. Vendor C offers a price of $$21$ per unit for the first

$1,000$ units, and $$19$ per unit for additional units.

a$.$ If the manager anticipates an annual volume of $20,000$ units, which alternative

would be best from a cost standpoint? For $30,000$ units, which alternative would

be best? b$.$ Determine the range for which each alternative is best. Are there any alternatives

that are never best? Which?