Assignment:
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 $15,000 to set up the process and then $1.82 per unit for labor and materials. a) Draw a graph illustrating the crossover (or indifference) point. b) Determine the number of units where either choice has the same cost.
Provide complete and step by step solution for the question and show calculations and use formulas.