A company is evaluating the cost structure of three suppliers for a key component. Using the following
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Question:
A company is evaluating the cost structure of three suppliers for a key component. Using the following cost information, over what range of output (i.e., quantities) would each supplier have the lowest total cost?
SUPPLIER FIXED COST VARIABLE COST
A $100,000 $10 per unit
B $120,000 $8 per unit
C $150,000 $7 per unit
Supplier A has the lowest total cost for quantities from _____ to _____ units.
Supplier B has the lowest total cost for quantities from _____ to _____ units.
Supplier C has the lowest total cost for quantities from _____ to _____ units.
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