Spori Stone is an IBC business that plans to sell BYU-Idaho keepsakes made from stone off...

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Spori Stone is an IBC business that plans to sell BYU-Idaho keepsakes made from stone off the original Jacob Spori building. This group of students is trying to determine what process they should use to cut and paint the stone. For option 1, they would purchase all the necessary equipment at a cost of $935 and they figure that each finished stone will cost about $7.80 to produce. For option 2, they could outsource production with a one-time charge of $105 and a unit cost of $10.10. At what volume (demand level) of stones is the cost for the two options the same? (Display your answer to two decimal places.) Number What is the total cost for the outsourcing option at this break-even volume? (Display your answer to two decimal places.) Number Spori Stone is an IBC business that plans to sell BYU-Idaho keepsakes made from stone off the original Jacob Spori building. This group of students is trying to determine what process they should use to cut and paint the stone. For option 1, they would purchase all the necessary equipment at a cost of $935 and they figure that each finished stone will cost about $7.80 to produce. For option 2, they could outsource production with a one-time charge of $105 and a unit cost of $10.10. At what volume (demand level) of stones is the cost for the two options the same? (Display your answer to two decimal places.) Number What is the total cost for the outsourcing option at this break-even volume? (Display your answer to two decimal places.) Number

Answer rating: 100% (QA)

To find the volume demand level at which the cost for the two options is the same we need to set up ... View the full answer