Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in-house using either Process A or Process B, or purchased from a supplier. Cost data are given below. For what levels of demand should each process be chosen?
|
Fixed Cost |
Variable Cost |
|
|
Process A |
$ 8,000 |
$10 |
|
Process B |
$20,000 |
$ 4 |
|
Supplier |
$0 |
$20 |
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