Question: How to do this? Step by step and using calculator? Thank you Problem 6 (10 Marks) - COST VOLUME ANALYSIS At Fraser Engineering, Eric is

How to do this? Step by step and using calculator? Thank you

Problem 6 (10 Marks) - COST VOLUME ANALYSIS At Fraser Engineering, Eric is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could use either of two processes. One would entail a variable cost per unit of $17, and an annual fixed cost of $200,000; the other would entail a variable cost of $14 and annual fixed costs of $240,000. Three vendors are willing to provide the part. Vendor A has a price of $20 per-unit for any volume up to 30,000 units. Vendor B has a price of $22-per-unit for demand of 1,000 units or less, and $18 per-unit for larger quantities. Vendor C offers a price of $21-per-unit for the first 1,000 units, and $19 for each additional unit. a. What is the correct formula to use to compare these options? (Marks: 2) b. Which options would be best for: (Marks: 6 ) i. 10,000 Units? ii. 20,000 Units? iii. 100,000 Units? c. What is the value in considering these option across three very different demand values ranging from 10,000 to 100,000 units? (Marks: 2)

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