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6) My company is currently buying an item for \$42. We can make the same item internally for a labor cost of $17 a material cost of $11 and a tooling cost of $3 per part. However I need to purchase a machine to do the job. The machine will cost $450,000 and will require annual maintenance of 75,000. The machine will have a salvage value of 65,000 in five years - At 7% interest what is the annual break- even quantity point? 7) Your boss wants you to calculate the break even on the following machine. Machine cost is $3,5000,000 Cost of money is 7% Break even calculated over 4 years Machine will make a part at a cost of $87 with a sales price of $134 How many parts will need to be sold annually to break even