Stanley inc., has a need for a specific component in there manufacturing process. they has requested bids from three of it's subcontractors. company a has an initial cost of $47,500.00 and variable costs of $76.00 per unit. company b has an initial cost of $66,000 and variable costs of $56.75 per unit. company c has an initial cost of $75,000 and variable costs of $51.50 per unita.
a. what are the crossover points?
b. at what output does company b become less expensive than company a?
c. at what output does company c become less expensive than company b?
d. the forecasted amount of components required for the manufacturing process 1,500 units, which company should stanley inc. choose?