Activity$-$ Make$-$or$-$buy decision is an act of choosing between manufacturing a product in$-$house or purchasing it from an external supplier.

Suppose a manufacturer needs to produce a custom aluminium housing for a particular customer order. Because it currently does not have the equipment necessary to make the housing, it would have to acquire machines and tooling at a fixed cost $($net of salvage value after the project is completed$)$ of $$250,000.$ The variable cost of production is estimated to be $$20$ per unit. The firm can outsource the housing to a metal fabricator at a cost of $$35$ per unit. The customer order is for $12,000$ units.

Tasks:

Q$1.$ In this situation to make$-$or$-$buy decision, calculate the quantity produced using equation Q$=$FC$/($VC$2-$VC$1)$