Question: Zodiac Furniture is considering the production of a new line of metal office chairs. The chairs can be produced in-house using either process A or process B. The chairs can also be purchased from an outside supplier. Specify the levels of demand for each processing alternative given the costs in the table. (Calculate the following demand ranges. If a field should be blank enter 0. If a range goes to infinity enter "infinity". All boxes must be filled.)
|
Fixed Cost |
Variable Cost |
Process A |
$20,000 |
$27 |
Process B |
$29,000 |
$15 |
Outside Supplier |
$0 |
$52 |
|
From |
To |
Process A |
|
|
Process B |
|
|
Outside Supplier |
|
|