Question: please answer both! QUESTION 20 F Break-even quantity: Q = p-c Evaluating processes, make-or-buy indifference quantity: Q F.. - F C C A company must

please answer both! please answer both! QUESTION 20 F Break-even

QUESTION 20 F Break-even quantity: Q = p-c Evaluating processes, make-or-buy indifference quantity: Q F.. - F C C A company must decide whether to purchase new equipment to make a new product, or to buy the product from an outside supplier. The company can purchase a brand new, ali-purpose machine for $30,000, and it will cost $50/unit to produce the new product on this machine. Alternatively, it can buy the product from the supplier for an investment of $25,000, with a product cost of $60/unit What is the break-even quantity between the two alternatives? a. 500 units 6.600 units c. 700 units d. 800 units QUESTION 21 Which one of the following factors usually calls for a larger capacity cushion? a. Unstable supply chain b. High capital intensity c. Low variation in demand d. Infrequent changes to product mix

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