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2. There are three alternatives available to meet the demand of a particular product. They are as follows: (a) Manufacturing the product by using process

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2. There are three alternatives available to meet the demand of a particular product. They are as follows: (a) Manufacturing the product by using process A (b) Manufacturing the product by using process B (c) Buying the product. The details are as given in the following table: Cost Elements Buy Manufacturing the product by using process A 400,000 35 Manufacturing the product by using process B 200,000 50 Fixed cost/year Variable cost/unit Purchase cost/ unit 110 a- Determine the breakeven points for each pair of the options. b- Specify the range at which each option should be selected c- If the annual demand of the product is 8,000 units. Should the company make the product using process A or process B or buy it

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