Cost of production is 11 × 3500 +9000 = $47500
Cost of buying = $14. 46 × 3500 + $4590 = $55200
Money saved = $7700
2. Indifferent level :
11x + 9000 = 14.46x + 4590
3.46x = 4410
X = 1275 units approx. Answer.
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