Assignment:
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor for $7.20 each or to produce them in house. There are two in house options.
- Option 1 would have an annual fixed cost of $161000 and a variable cost of $5.70.
- Option 2 would have an annual fixed cost of $191000 and a variable cost of $3.90.
Calculate the maximum quantity that would have the manager select purchasing the motors from the vendor.
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.