A firm 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 $8 each or to produce them in-house. Either of two processes could be used for in-house production; Process A would have an annual fixed cost of $165,000 and a variable cost of $5 per unit, and Process B would have an annual fixed cost of $190,000 and a variable cost of $4 per unit. Determine the range of annual volume for which each of the alternatives would be best. (Round your first answer to the nearest whole number. Include the indifference value itself in this answer.)

Fixed Cost:

Process A = $165,000

Process B = $190,000

VC per unit:

Process A = $5

Process B = $4

TC = FC + VC*Q

Total cost function for Process A

TC(A) = 165,000 + 5Q

Total cost function for Process B

TC(B) = 190,000 + 4Q

We equate the two function

165,000 + 5Q = 190,000 + 4Q

5Q - 4Q = 190,000 - 165,000

Q = 25,000

25,000 units is the indifference level of production.

As process A has lower fixed cost, it is better process if the production volume is lower than 25,000 units. For more than 25,000 units, process B is better.

Purchase from vendor option is better if the production volume is less than 47,500 units [$190,000/$8-$4].

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are: