Question: Given the following information: Costs Buy Option Make Option Variable Cost $ 1 2 9 $ Fixed Cost $ 7 , 5 0 0 $

Given the following information:
Costs Buy Option Make Option
Variable Cost $129$
Fixed Cost $7,500 $105,000
a. Find the break-even quantity and the total cost at the break-even point.
b. If the requirement is 45,000 units, is it more cost-effective for the firm to buy or make
the components? What is the cost savings for choosing the cheaper option?

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