Company X, SA sells school backpacks. Currently it buys them from the supplier Industrias ABC, SA for a value of B/.10.00 per unit and sells them for B/.30.00. However, the CFO is thinking about making them instead of buying them. The Plant Manager gives you the following manufacturing information:

Direct raw material 5.00

Direct labor 3.00

Other indirect costs 1.00

Likewise, the monthly fixed costs of the plant are:

Local rental 2,000

Machine depreciation 1,000

Administrative Expenses 1,000

Estimated units to sell in 2024 is 10,000 units annually.

With this information determine:

a) The variable cost of purchasing CVC and the Variable Cost of Manufacturing CVF,

b) Determine the total cost of purchasing and the total cost of manufacturing.

c) Which alternative is better for the company, whether to buy the suitcases or manufacture them?

d) Calculate the break-even point in units of the best alternative, that is, how many units the company must buy or manufacture to cover all its costs.