A company has identified the following 3 options for obtaining a part 1 buy the parts at $200 per unit including raw materials 2 make the parts using a traditional machine at $75 per part including raw materials 3 make the part using a computerized machine at $15 per unit there is no fixed cost if the item is purchased the traditional machine has fixed costs of $200,000 while the computerized machine has fixed cost $80,000 the demand could vary from 0 all the way to 2500 units.

a) what is using break-even analysis, which option should the company pursue?
b) show the graph and all your calculations.

Answer rating: 100% (QA)

TCbuy 200 Q ... View the full answer