Simuelson industries can produce its own motors for a 32000, Operation Management

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Simuelson industries can produce its own motors for a 32000

Simuelson industries can produce its own motors for a $32,000 fixed monthly cost and a $40 variable cost per unit.

Alternatively, Simuelson industries can purchase the motors from an outside supplier for an extra fixed cost of $34,000 per month and a $30 variable cost per unit. What is the indifference point?

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Operation Management: Simuelson industries can produce its own motors for a 32000

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