Problem $5-7($Static$)$

A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the

appliance from a vendor at $$7$ each or to produce them in$-$house. Either of two processes could be used for in$-$house production;

Process A would have an annual fixed cost of $$160,000$ and a variable cost of $$5$ per unit, and Process B would have an annual fixed

cost of $$190,000$ and a variable cost of $$4$ per unit. Determine the range of annual volume for which each of the alternatives would be

best.

Note: Round your first answer to the nearest whole number. Include the indifference value itself in this answer.