Question: Problem 3: Total Cost-Breakeven Analysis (Chapter 8) A company which produces medical equipment is considering introducing a sanitizing product to the market, the new product

Problem 3: Total Cost-Breakeven Analysis (Chapter

Problem 3: Total Cost-Breakeven Analysis (Chapter 8) A company which produces medical equipment is considering introducing a sanitizing product to the market, the new product costs $2.50 for labor and material. The company is evaluating three plans : A, B, and C for producing the Sanitizer: Plan A. Building the product in-house, requiring an investment of $15,000 as A Fixed Cost; Plan B. Outsourcing the product manufacturing, and developing an assembly and labeling facility in- house, requiring an investment, As a Fixed Cost of $7000; and Plan C. Outsourcing the whole product, while still maintaining sales support, requiring investment, As a Fixed Cost of $2000. The company expects the product to sell for $5.30 per unit. Question a: Estimate the breakeven point under each of the previous plans. Question b: if the company considers the market to be volatile, which of previous plans has the lowest risk

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