Frandec Company manufactures, assembles, as well as rebuilds material hand equipment employed in warehouses and distribution centers. One product, called a Liftmaster is assembled from four components: a frame, a motor, two supports, and a metal strap. Frandec is planning a production of 5000 Liftmasters next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may either be manufactured by the company or purchased from an outside supplier.
Manufacturing and purchase costs per unit are shown.