Question: Variable Cost $ 7 Annual Requirement = 1 6 , 0 0 0 units $ 9 The data has been collected in the Microsoft Excel

Variable Cost $

7

Annual Requirement

= 16, 000

units

9

The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

Questions

What is the break

-

even point? Round your answer to the nearest whole number.

What is the total cost at the break

-

even point? Round your answer to the nearest dollar.

What is the total cost for the make option? Round your answer to the nearest dollar.

What is the total cost for the buy option? Round your answer to the nearest dollar.

What is the cost difference

(

make

-

buy

) ?

Round your answer to the nearest dollar. Use the minus sign to enter a negative difference, if any.

To obtain the lowest production cost, should the firm make or buy the part?

Variable Cost $7 Annual Requirement =16,000 units $9 The data has

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