Question: Good day, can someone help me in solving this problem. It's a bit hard for me to solve it and I hope you can also

Good day, can someone help me in solving this problem. It's a bit hard for me to solve it and I hope you can also provide an explanation. Thank you.

Good day, can someone help me in solving this problem. It's a

Fill in the blanks: A manager is trying to decide whether to purchase (buy) a certain part or to have it produced internally (make). Internal production could use either of two processes. One would entail a variable cost of USD19.00 per unit and an annual xed cost of USD 220,000.00; the other would entail a variable cost of USD15 per unit and an annual xed cost of USD 245,000.00. There are three vendors who are willing to provide the part. Vendor 1 has a price of USD 21.00 per unit for any volume up to 32,000 units. Vendor 2 has a price of USD 24.00 per unit for a demand of 1,000 units or less and USD18.00 per unit for larger quantities. Vendor 3 offers a price of USD 23.00 per unit for the rst 1,000 units, and USD 19 per unit for additional units. If the manager anticipates an annual volume of 1 0,000 units, which alternative would be best from a cost standpoint? For 25,000 units, which alternative would be best? 1. At 10,000 units, is the total cost from vendor 1. 2. At 10,000 units, is the total cost from vendor 2. 3. At 10,000 units, is the total cost from vendor 3. 4. At 25,000 units, is the total cost from vendor 'l. 5. At 25,000 units, is the total cost from vendor 2. 6. At 25,000 units, is the total cost from vendor 3. 7. If the item is made internally, is the cost for 10,000 units using Option 1. 8. If the item is made internally, is the cost for 10,000 units using Option 2. 9. If the item is made internally, is the cost for 25,000 units using Option 1. 10. If the item is made internally, is the cost for 25,000 units using Option 2

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