Sydney Electronics markets a unique Bluetooth speaker model in Australia, with a yearly sales figure of $1,690$ units. The demand is steady and evenly spread over the year. The company currently outsources its speaker production to a local supplier at a cost of $$20$ per unit. Each shipment incurs a fixed cost of $$1,000.$ Sydney Electronics insures each speaker in stock at a rate of $10\%$ of its purchasing cost if it is held for the entire year. Insurance costs decrease proportionally with shorter storage durations. The firm is contemplating manufacturing the speakers internally. This would involve leasing equipment for $$9,600$ annually. Starting a production cycle would cost $$600$ for setup and cleaning. Operating continuously, the production line could output $8,000$ units annually. The per$-$unit production cost would be $$15,$ covering materials and energy. It's assumed the insurance costs of in$-$house produced speakers would match that of the outsourced ones $(10\%$ of their production cost$).$ The company has a warehouse with a $800-$unit capacity but can rent additional space if needed$$one warehouse for $$200$ a year holds $300$ units, and another, more modern one for $$300$ a year also holds $300$ units. Disposing of unsellable speakers is not considered an option. As a consultant for Sydney Electronics, your task is to evaluate the different production and procurement strategies available. Your report should detail your assumptions, methodologies, findings, and advice, focusing on a financial comparison of the options. Conclude with a brief discussion of your analysis.