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Business, 19.10.2019 02:30 lopezhailey317

The supply manager at a dishwasher manufacturer is assessing the company should purchase the pump from a supplier or assemble the pump in-house. forecasts suggest that 16,000 pumps are needed per year. the annual fixed costs to assemble the pumps are $170,000 per year. the variable costs per unit to assemble the pump are $14/unit. the pumps can be purchased for $24/unit. a. compute the total annual cost for insourcing and outsourcing the pumps.

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