Question: Question 5: A company is considering making or buying a certain component that it needs. The purchase cost is $9 per piece. To make

Question 5: A company is considering making or buying a certain component that it needs. The purchase cost is $9 per piece. To make the part, the company needs to rent a machine at the cost of $4000 per month and pay $1500 in monthly operational expenses. On top of that, making each piece would cost $4 for raw materials. a. Find the limit for the monthly quantity at which buying is better than making. b. If the seller of the component offers a discount of 5% for quantities above 1000 such that the first 1000 units go for $9 per unit while the portion above 1000 goes for $8.55 per piece, what would be the new breakeven quantity?

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