Problem 2. Suppose a company needs to decide whether to make or to buy a product. The product can be purchased from the market at a price of 19 TL per unit. Alternatively, it can be manufactured in-house, in which case a machine has to be purchased for 120,000 TL to produce the part. The variable (material and labor) costs will be 10 TL/unit. This product will be needed for the next 5 years, at which time, the machine can be solved at a salvage value of 20,000 TL. a) Determine annual break-even (BE) quantity between buying and making. i=15%. b) If annual production is 6,000 units, should you make or buy the product? If the sales price is 25 TL/unit, how much profit is made per year? (Note: For Purchasing: TC1=FC+Vc1*Q; For Making: TC2=FC+Vc2*Q; set TC1=TC2; Circle the correct answer and show your calculations. b) BE=3483; a) BE=3250; Profit=40560 Profit=58653 d) BE=4373; C) BE=1650; Profit=35682 Profit=55763 Problem 2. Suppose a company needs to decide whether to make or to buy a product. The product can be purchased from the market at a price of 19 TL per unit. Alternatively, it can be manufactured in-house, in which case a machine has to be purchased for 120,000 TL to produce the part. The variable (material and labor) costs will be 10 TL/unit. This product will be needed for the next 5 years, at which time, the machine can be solved at a salvage value of 20,000 TL. a) Determine annual break-even (BE) quantity between buying and making. i=15%. b) If annual production is 6,000 units, should you make or buy the product? If the sales price is 25 TL/unit, how much profit is made per year? (Note: For Purchasing: TC1=FC+Vc1*Q; For Making: TC2=FC+Vc2*Q; set TC1=TC2; Circle the correct answer and show your calculations. b) BE=3483; a) BE=3250; Profit=40560 Profit=58653 d) BE=4373; C) BE=1650; Profit=35682 Profit=55763