Draw a graph illustrating the crossover or indifference


A company is considering a gear assembly that it now purchases from company B. company B charge $4 per unit with a minimum order of 3000units. company A estimates that it will cost $15000 to set up the process and then $1.82 per unit for labor and materials.

draw a graph illustrating the crossover (or indifference) point

determine the number of units where either choice has the same cost

 

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Operation Management: Draw a graph illustrating the crossover or indifference
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