#$1.$ A company is considering whether to make a component in$-$house or buy it from

an external supplier. The company has collected the following cost information:

For Making In$-$House: Fixed cost is $$125,000,$ Variable Cost per unit is $$15$

For Buying from a Supplier: Fixed cost is $$5000,$ Variable cost per unit is $$17$

Using the attached Excel file worksheet#$1)$ and the goal seek function where appropriate:

a$)$ Determine the break$-$even point $($number of units$)$ at which the total cost of

making the component in$-$house equals the total cost of buying it from the

supplier. $(3$ points$)$

b$)$ Suppose the fixed costs for making the component in$-$house increase to

$$150,000.$ Determine the new break$-$even point $($number of units$)$ at which

the total cost of making the component in$-$house equals the total cost of

buying it from the supplier. $(3$ points$)$

c$)$ If the company's demand is a maximum of $50,000$ units, should the component be made

or bought from a supplier? Explain your response. Answer using excel. $(4$ points$)$