Question: The purchasing department can reduce order quantity and work wtih suppliers to deliver purchases items more frequently. This should lower total inventory. Make option Buy

The purchasing department can reduce order quantity and work wtih suppliers to deliver purchases items more frequently. This should lower total inventory.

Make option Buy option

fixed cost $125,000 Fixed Cost $5,000

Variable Cost $15 Variable Cost $17

Find the break-even quantity and the total cost at the break-even point.

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