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 at $7 each or to produce them in-house. Either of two processes could be used for in-house production; one would have an annual fixed cost of $160,496 and a variable cost of $5 per unit, and the other would have an annual fixed cost of $192,187 and a variable cost of $4 per unit. Determine the range of annual volume for which each of the alternatives would be best. (Round your answer to the nearest whole number.)
For annual volume less than _______, (Click to select)production in house at $4 per unitproduction in house at $5 per unitpurchase from the vendor is best. For larger quantities, best to produce in house at $____ per unit.