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Producing a gear assembly-stan fawcett

Question:

Stan Fawcett's 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 3,000 units. Stan estimates that it will cost $24,000 to set up the process and then $1.82 per unit for labor and materials. Either choice would have the same cost at approximately how many units?

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Finance Basics: Producing a gear assembly-stan fawcett

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