** PLEASE SEE PICTURE BELOW **Equilibrium analysis in outsourcing decisionsGiven the following information: yet wered In the production process of the ABX company, an intermediate product is used that is being purchased from a subcontracted company that charges $200 per unit. The ABX company is considering not outsourcing and manufacturing this intermediate product internally, which would cost $ 150 per piece plus $55,000 fixed costs for equipment, appropriate structure, etc. The estimated demand for this intermediate product is 900. 1. Determine the equilibrium quantity for which the company would be indifferent to manufacturing the part in-house or outsourcing it. (10 points) 2. What is the maximum price per intermediate product that ABX would be willing to pay if the demand forecast was 700 pieces? (10 points) Includes calculations.

Equilibrium analysis in outsourcing decisions Given the following information: In the production process of the ABX company, an intermediate product is used that is being purchased from a subcontracted company that charges $200 per unit. The ABX company is considering not outsourcing and manufacturing this intermediate product internally, which would cost $ 150 per piece plus $55,000 fixed costs for equipment, appropriate structure, etc. The estimated demand for this intermediate product is 900 units 1. Determine the equilibrium quantity for which the company would be indifferent to manufacturing the part in-house or outsourcing it. (10 points) 2. What is the maximum price per intermediate product that ABX would be willing to pay if the demand forecast was 700 pieces? (10 points) Includes calculations. O Paragraph B IE