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A company plans to begin production of a new small appliance. The manager must decide

whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-house. Either of two processes could be used for in-house production; one would have an annual fixed cost of $190,000 and a variable cost of $4 per unit. Determine the range of annual quantity for which each of the alternatives would be best.

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