Paradigm Toys presently manufactures and assembles all the parts for its toy truck product. Another...
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Paradigm Toys presently manufactures and assembles all the parts for its toy truck product. Another company has offered to sell the parts to Logan for $ per unit. Logan is considering this offer. If Logan buys the parts instead of making them, the space used in producing the parts could be used for a new product line, which is scheduled to begin production next year. If Logan continues to produce the parts itself, then Logan will have to rent manufacturing space from another company in an adjacent building to house the new product line. The rent that Logan would have to pay for this rental space would be $ per year.
Paradigm Toys presently manufactures and assembles all the parts for its toy truck product. Another company has offered to sell the parts to Logan for $ per unit. Logan is considering this offer. If Logan buys the parts instead of making them, the space used in producing the parts could be used for a new product line, which is scheduled to begin production next year. If Logan continues to produce the parts itself, then Logan will have to rent manufacturing space from another company in an adjacent building to house the new product line. The rent that Logan would have to pay for this rental space would be $ per year.
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