Stan fawcetts company is considering producing a gear assembly that it now purchases from salt lake supply, inc. salt lake supply charges $4 per unit with a minimum order of 3000 units. Stan estimates that it will cost 15,000 to set up the process and then 1.82 per unit for labor and materials.
A. Draw a graph illustrating the crossover (or indifference) point
B. determine the number of units where either choice has the same cost