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Choosing An Order By Unit Price Matching

Stan Fawcett's company is considering producing a gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit with a minimum order of 3,000 units. Stan estimates that it will cost $24,000 to set up the process and then $1.82 per unit for labor and materials. Either choice would have the same cost at approximately how many units?

____________ units
Round your answer to the nearest whole number; for example, 1234 .

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Solution Summary

This solution shows step-by-step calculations to determine the number of units required for a certain cost of labor and materials.