Question: The variable cost (material and labor) required to assemble a VHS Cassette in-house is $0.60/unit. The fixed overhead costs of operating an assembly line is

The variable cost (material and labor) required to assemble a VHS Cassette in-house is $0.60/unit. The fixed overhead costs of operating an assembly line is $ 1,000,000 per year. However, it is possible to outsource the assembly operations from a contract manufacturer at a cost of $0.90/unit. If it is possible to sell a VHS Cassette at a price of $1.00/unit, determine the minimum capacity needed for a profitable VHS Cassette assembly operation

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