Question: need help You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 per unit.
need help
You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 per unit. You have found an outside supplier who will make the part for $15 per unit if you will pay their annual fixed costs of $300,000 per year. The following table summarizes the details of this make versus buy decision. What is the break-even quantity, and what is the buy or make decision if the forecasted annual quantity is 30,000 units? Break-even quantity: 50,000 units; Decision: Buy Break-even quantity: 60,000 units; Decision: Make Break-even quantity: 60,000 units; Decision: Buy Break-even quantity: 50,000 units; Decision: Make
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