Question: 8) Leonard's company purchases a window hardware from William's Hardware Co and sells to the market. Leonard is also considering manufacturing the product internally. William's
8) Leonard's company purchases a window hardware from William's Hardware Co and sells to the market. Leonard is also considering manufacturing the product internally. William's Hardware Co. charges 56 per unit, with a minimum order of 3,000 units. If Leonard manufactures the product in-home, the process setup fee could be $12.000 and then $3 per unit for labor and materials. a) Draw a rough graph illustrating the crossover (or indifference) point. [10 Points] b) Determine the number of units where either choice has the same cost. [10 Points]
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
