The Velcu Manufacturing Co. is considering the outsourcing of one of its standard parts to free up capacity for other, more important items. They make the part for $22, and require 12,000 of the parts per year, with a fixed cost contribution of $5000 per year. Greg, the supply manager, has identified two capable suppliers that make the part—the Spens Co. sells the product for $19, but requires an up-front, one time contractual and transportation fee of $4000. The Perkins Co.’s cost is $19.50 per unit, with no other fees. Determine the break-even points, graph the three alternatives, and show which alternative is preferred for the supply of 12,000 units per year.