the parameter values represent a decision for which fixed costs are $$250,000.$

The image shows a graph of the total cost of in$-$house production and the total cost of outsourcing. The fixed costs of in$-$house production are $$250,000,$ and the variable cost per unit is $$20.$ The fixed costs of outsourcing are $$0,$ and the variable cost per unit is $$35.$

The break$-$even point is the point at which the two lines intersect. At this point, the total cost of in$-$house production is equal to the total cost of outsourcing. The break$-$even point in this case is $16,670$ units.

For quantities above the break$-$even point, in$-$house production is less expensive. For quantities below the break$-$even point, outsourcing is less expensive.

The parameter values represent a decision for which fixed costs are $$250,000.$ This means that the decision$-$maker is considering whether to produce in$-$house or outsource. If the decision$-$maker believes that they will produce more than $16,670$ units, then they should choose to produce in$-$house. If the decision$-$maker believes that they will produce fewer than $16,670$ units, then they should choose to outsource.