Problem Set 3 1. Given the following information: a. Find the break-even quantity and the total cost at the break-even point. b. If the requirement is 45,000 units, is it more cost-effective for the firm to buy or make the components? What is the cost savings for choosing the cheaper option? 2. Redmart is looking to open up a new fulfillment center as part of their expanding network to meet faster delivery needed for their customers in Southeast Asia. Information regarding three candidate sites are shown below: Which site would be ideal for Redmart to open its new fulfillment center? 3. Paragon Electric needs to select a supplier for its manufacturing plant. Tables below show the annual requirements and the proposals submitted by two suppliers: Determine which supplier is more cost effective using total cost of ownership concept. (Hint: you need to calculate the total cost including total unit cost, transportation cost, inventory holding/carrying cost, ordering cost, and quality cost for each supplier.)