Determine number of units where either choice has same cost


Problem

Stan Fawcett's company currently purchases a gear assembly from Salt Lake Supply, Inc., at $3.80 per unit with a minimum order of 3,000 units. Stan is considering instead producing the gear assembly himself. He estimates that producing it himself will cost $20,000 to set up the process and then $1.75 per unit for labor and materials. Determine the number of units where either choice has the same cost.

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Operation Management: Determine number of units where either choice has same cost
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