Question: 9 . Given the following data, determine the total annual cost of making with each of process A and B and of buying. Estimated demand

9. Given the following data, determine the total annual cost of making with each of process A and B and of buying. Estimated demand is 8,500 units a year. The operations manager has said that it would be possible to achieve a 12 percent reduction in the fixed cost of Process B and a 12 percent reduction in Bs variable cost per unit. Would that be enough to change your answer if the estimated annual cost to achieve those savings was $5,000?
Make
Process A Process B Process C
Variable cost per unit $49 $51 $50
Annual fixed cost $42000 $34000
Transportation cost per unit $2

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