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2. Kenny and Lady T's production is deciding to either to buy resources from an outside vendor or make hair product to distribute to their

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2. Kenny and Lady T's production is deciding to either to buy resources from an outside vendor or make hair product to distribute to their customers. They will incur the following cost: TO MAKE OPTION TO BUY OPTION FIXED COSTS15,000 $12,500 VARIABLE COST $5.00 $10.00 a. What is the breakeven quantity (Spoints) b. How much will it cost Kenny & Lady T production to MAKE OR BUY at the Breakeven Quantity TO MAKE (4points) TO BUY (4points) c. If Kenny & Lady T's production's annual required production quantity were estimated to be 2,500 units, what would it cost Kenny and T. TO MAKE (4points) TO BUY (4points) d. 1. Now graphically illustrate your answers from 'a'to part 'c' Make sure you identify the cost differential on the graph and show all your calculated cost on the axis on the graph. (25points) d.2. Based on your calculations, would you advise Kenny & Lady T's production to make the hair product or buy resources from the outside vendor and why? (Spoints)

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