The Vera Molding company has two alternatives for meeting a customer requirement for 9,000 units of a
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The Vera Molding company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding. If done in-house, fixed cost would be $350,000 with variable cost at $30 per unit.
Alternative two is to outsource for a total cost of $80 per unit.
a. What is the break-even quantity?
b. Should the firm make the 9,000 units in-house or outsource?
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