Question: Question 3 3 ( 3 points ) A manufacturer must decide whether to produce tablet covers internally or purchase them from an outside supplier. The
Question pointsA manufacturer must decide whether to produce tablet covers internally or purchase them from an outside supplier. The supplier is willing to sell the tablet covers for $ each, but the manufacturer estimates that it can produce the covers internally for $ each. Management estimates that expanding the current plant and purchasing the necessary equipment to make the covers would cost $ million. Additionally, there are fixed annual operating costs of $ associated with the expansion. The supplier also charges an annual fixed cost of $ for the supply contract.a Above what demand quantity should the expansion be considered?b Should they undertake the expansion if the expected demand is million units? You should answer to part b in the next questionYour Answer:Answer
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