Question: Leonards company purchases a window hardware from Williams Hardware Co and sells to the market. Leonard is also considering manufacturing the product internally. Williams Hardware

Leonards company purchases a window hardware from Williams Hardware Co and sells to the market. Leonard is also considering manufacturing the product internally. Williams Hardware Co. charges $6 per unit, with a minimum order of 3,000 units. If Leonard manufactures the product in-home, the process setup fee could be $12,000 and then $3 per unit for labor and materials. a) Draw and upload a graph illustrating the crossover (or indifference) point. b) Determine the number of units where either choice has the same cost.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!