A pottery maker is considering adding a new plant for additional capacity. The proposed facility will have fixed costs of $9750 per month and variable costs of $0.82 per unit produced. Each piece of pottery is sold to retailers at a price that averages $0.93 What monthly volume is needed to break even? Your Answer: Answer A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor for $7.30 each or to produce them in house. There are two in house options. Option 1 would have an annual fixed cost of $161000 and a variable cost of $5.30. Option 2 would have an annual fixed cost of $194000 and a variable cost of $4.50. Calculate the maximum quantity that would have the manager select purchasing the motors from the vendor. Your