A manufacturing company needs to know whether to make in-house or buy a roller gear assembly for its new fax machine production.The company expects to produce 9,000 units per year.The following estimates have been made:
a.What is the annual cost to make the roller gear assembly in-house?
b.What is the annual cost to buy the roller gear assembly?
c.At what volume are they indifferent regarding the decision to make or buy?
Definitions:
Ozone
A molecule composed of three oxygen atoms, found in the Earth's stratosphere, where it plays a critical role in protecting living organisms from ultraviolet radiation.
Lichen
A symbiotic organism composed of a fungus and a photosynthetic partner, typically an alga or cyanobacterium, found on rocks, trees, and soil.
Mutualistic Relationship
A type of symbiotic relationship where both organisms involved benefit from their interaction.
Dinoflagellate
A type of planktonic microorganism, many species of which are photosynthetic, contributing to marine and freshwater ecosystems.
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