QUESTION $4$

You currently make a part on old equipment at a cost of $$50,000$ per year and a variable cost of $$20/$ unit. You have found an outside supplier who will make the part for $$\frac{15}{?}$ unit if you will pay their annual fixed costs of $$200,\frac{000}{?}$ year. The following table summarizes the details of this make versus buy decision.

$\backslash$table$[[$ALTERNATIVE$,$FIXED COST,VARIABLE COST$],[$Buy$,$$$200,000$ per year,$$15$ per unit$],[$Make$,$$$50,000$ per year,$$20$ per unit$]]$

a$.$ What is the break even quantity between buying and making?

$q,$ units per year

$$

QUESTION $5$

b$.$ What are total costs to buy an annual quantity of $40,000$ units? $ $q,$

QUESTION $6$

c$.$ What are total costs to make a quantity of $40,000$ units per year?

$$