Question: v The variable cost (material and labor) required to assemble a children's toy in-house is $0.60/unit. The fixed overhead cost of operating an assembly line
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The variable cost (material and labor) required to assemble a children's toy in-house is $0.60/unit. The fixed overhead cost 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 children's toy at a price of $1.00/unit, determine the minimum capacity needed for a profitable children's toy assembly operation. a
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