A & B

Check my work Problem 5-8 (Static) Amanager 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 entala variable cost of $17 per unit and an annual fixed cost of $200.000, the other would entaila vanable cost of $14 per unit and an annual foxed 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 1000 units or less, and $10 per unut for larger quantities. Vendor 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 10.000 units which alternative would be best from a cost standpoint? For 20.000 units, which alternative would be best TO 10 000 Int1 2 Vand Vond Venit the best from coststandpoint for 2 000 Int1 Int2 Vand A Vend Venda om a cost standpoint b. Determine the range for which each alternative is best. Optimal Choice Range 1 to 1,000 1,001 to 60.000 50.001 or more 12:00 PM