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Suppose that a manufacturer can produce a part for 9 00 with a fixed cost...

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Basic Math

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Suppose that a manufacturer can produce a part for 9 00 with a fixed cost of 5 000 Alternately the manufacturer could contract with a supplier in Asia to purchase the part at a cost of 12 00 which includes transportation a If the anticipated production volume is 1 500 units compute the total cost of manufacturing and the total cost of outsourcing b What is the best decision a The total cost of manufacturing is Simplify your answer

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