Question: Problem # 5 ( from Section 1 . 3 Models in Business Analytics ) : A firm installs 1 , 5 0 0 air conditioners

Problem #5(from Section 1.3 "Models in Business Analytics"): A firm installs 1,500 air conditioners th need to be checked every six months. The firm can hire a team from its logistics department at a fixe cost of 6,000. This team will check each unit for 15.00. The firm can also outsource this at a cost 17.00 inclusive of all charges. Part a. For the given number of units, compute the firm's total cost of checking for both options. Whic is a better decision? Part b. Find the break-even volume and characterize the range of volumes for which it is more economic to outsource.

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