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3. A firm needs a new type of small appliance. The manager must decide whether to...

3. A firm needs a new type of small appliance. The manager must decide whether to purchase the appliance from a vendor at ten dollars per unit or to produce them in-house. The in-house process would have an annual fixed cost of $220,000 and a variable cost of eight dollars per unit. Determine the range of annual demand for which each of the alternatives would be best.

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