Problem $6-26$ Algo $($Supply Chain Design Trade$-$Offs$)$

Question $1$ of $8$

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A company has two alternatives for meeting a customer requirement for $830,000$ units of a part used in office printers. If done in$-$house, fixed cost would be $$2,000,000$ with variable cost at $$2\mathrm{.}40$ per unit. Alternative two is to outsource for a total cost of $$3\mathrm{.}80$ per unit. Determine the break$-$even point. Round your answer to the nearest whole number.

units

Determine if they should make the item in$-$house or outsource it$.$ Round your answers to the nearest dollar.

Total cost if done in$-$house: $

Total cost if outsourced: $

So$,$ the company should and save $