Question: A company is considering three different options for capacity management due to inerease in demand of 3500 units next year. Option 1 has a fixed

A company is considering three different options

A company is considering three different options for capacity management due to inerease in demand of 3500 units next year. Option 1 has a fixed cost of $25,000 and a variable cost of $15 per unit. Option 2 has a fixed cost of $15,000 and a variable cost of $20 per unit. The third option is outsourcing, which has a cost of $27 per unit. Which option should the company choose

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