Question: Buying a component ( i . e . , C 1 ) from Supplier A requires a fixed cost of $ 3 , 0 0
Buying a component ie C from Supplier A requires a fixed cost of $ with the variable cost of $ per unit. Buying C from Supplier B requires a fixed cost of $ and the variable cost is $ per unit. Making C inhouse requires a large upfront investment of $ but the variable cost is only $ per unit.
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