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Insourcing Incurs a Periodic Fixed Cost of $10,000 and a $0.50

Question 112

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Insourcing incurs a periodic fixed cost of $10,000 and a $0.50 variable cost. Outsourcing incurs a periodic cost of $6000 and a $0.90 variable cost. Over what ranges of demand is each option best?

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outsourcing is optimal between 1 and 10,...

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