Unformatted text preview: Management is considering vertical integration. It is determined that the company can produce its own suits for a fixed annual cost of $2,000,000 and a production cost of $100 per suit. The current supplier charges a $2,500,000 fixed annual cost and $120 per suit. Over what ranges of demand is each option best? (2 points)...
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- Spring '08
- Management, $28, Annual fixed costs, $32, $2,000,000, $2,500,000