Question: Problem 5 - 8 ( Static ) A manager is trying to decide whether to purchase a certain part or to have it produced internally.

Problem 5-8(Static)
A manager 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 of $17 per unit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unit and an annual fixed cost 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 per unit for additional units.
a. If the manager anticipates an annual volume of 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best?
\table[[TC for 10,000 units,TC for 20,000 units,],[Int.1:,Int. 1:,],[Int.2:,Int. 2:,],[Vend A,Vend A,],[Vend B,Vend B,],[Vend C,Vend C,],[Vendor.........................................................,,]]
 Problem 5-8(Static) A manager is trying to decide whether to purchase

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