The operations manager at Sebago Manufacturing is considering three proposals for supplying a critical component for its

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The Operations Manager At Sebago Manufacturing Is Considering Three Proposals For Supplying A Critical Component For Its 1 (173.25 KiB) Viewed 13 times

The operations manager at Sebago Manufacturing is considering three proposals for supplying a critical component for its new line of electric watercraft. Proposal one is to purchase the component, proposal two is make the component in-house using rebuilt equipment, and proposal three is to purchase new, highly automated equipment. The costs associated with each proposal are provided in the table below. At what quantity range will each option be preferred? Click the icon to view the costs associated with each proposal. Proposal one will provide the lowest annual cost if between and components are required annually. (Enter your responses as whole numbers.) More Info Proposal One: purchase Two: make with rebuilt equipment Three: make with new equipment component Annual cost of capital Variable cost of each required $0.00 $150,000.00 $22.50 $18.50 $425,000.00 $14.50 I X