3. a). Given the following make-buy information, what would be the break-even point? (4points)

	Make Option	Buy Option
Fixed Costs	$7500	$1500
Variable Costs	$ 4	$ 9

TO MAKE	TO BUY

3.b). How much will it cost the company to make or buy at the break-even quantity? (3points).

3. c.) If the company's annual required quantity were 2,500 units, what would it cost the company to make or buy the break-even quantity? (4points)

TO MAKE	TO BUY

3d). Now graphically illustrate your answers from part "a" to part "c". Based on your answers in part 3-c what would you advice the company to do, and why? (12points)