Question: QUESTION 1 4 points Save Answer Ed makes a certain camping equipment at a cost of $20 / unit. His annual fixed cost asociated with

QUESTION 1 4 points Save Answer Ed makes a

QUESTION 1 4 points Save Answer Ed makes a certain camping equipment at a cost of $20 / unit. His annual fixed cost asociated with the production is $50,000. Ed has decided to see how much an external supplier would charge for similar equipment if he were to purchase from them. The external supplier will make the part for $15 / unit if Ed will pay their annual fixed costs of $200,000 / year (see table). He summarizes these 2 sets of costs into tthe table below: Alternative Fixed Cost Variable Cost Buy $200,000 per year $15 per unit Make $50,000 per year $20 per unit What are Ed's total costs to MAKE a quantity of 40,000 units per year? $450,000 $400,000 $800,000 $850,000

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