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Business, 16.12.2020 18:00 leeney6166

A manufacturing firm has an annual demand of 300,000 units. Using its current operation, the firm pays $800,000 in annual fixed costs and $15.00 per unit in variable costs. A potential outsourcing provider has offered to produce the product for the manufacturer. Annual fixed costs would drop to $200,000, but variable costs would increase to $18.00 per unit. Based on this information, what should the manufacturer do

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A manufacturing firm has an annual demand of 300,000 units. Using its current operation, the firm pa...
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