Question: Memtech is deciding to buy their memory chip from one of two vendors. Below are the prices from each: 1. Vendor 1: Initial cost $100,000,

Memtech is deciding to buy their memory chip from one of two vendors. Below are the prices from each: 1. Vendor 1: Initial cost $100,000, unit cost $5

2. Vendor 2: No initial cost, unit cost $10 What is the breakeven between the two?

3. If marketing forecasts a demand of 50,000, which vendor should Memtech buy from?

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