Questions

a$.$ Assuming that cost is the only criterion, use break$-$even analysis to determine whether the firm should make or buy the item. What is the break$-$even quantity? Round your answer to the nearest whole number.

fill in the blank $2$

$24050$

units

What is the total cost at the break$-$even point? Round your answer to the nearest dollar.

$ fill in the blank $3$

$75100$

The firm should

the item.

b$.$ Calculate the total costs for both options at $27,000$ units. Round your answers to the nearest dollar.

Total cost $($make option$)$: $ fill in the blank $5$

Total cost $($buy option$)$: $ fill in the blank $6$

What is the cost savings for choosing the cheaper option? Round your answer to the nearest dollar.

$ fill in the blank $7$