A company is considering a gear assembly that it now purchases from company B. Company B charge $4 per unit with a minimum order of 3000units. Company A estimates that it will cost $15000 to set up the process and then $1.82 per unit for labour and materials.
Draw a graph illustrating the crossover (or indifference) point determine the number of units where either choice has the same cost what happens if the units is less than the cross over units?