Question: Buying a component ( i . e . , C 1 ) from Supplier A requires a fixed cost of $ 3 , 0 0

Buying a component (i.e., C1) from Supplier A requires a fixed cost of $3,000, with the variable cost of $20 per unit. Buying C1 from Supplier B requires a fixed cost of $5,000, and the variable cost is $15 per unit. Making C1 in-house requires a large upfront investment of $10,000, but the variable cost is only $10 per unit.

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