A. Abby Company currently produces everything in-house. Fixed costs are $1,035,378, and variable costs per unit are $1.04.

A third party approaches Abby and offers to outsource the production. If Abby accepts the contract, she can bring her bring her own fixed costs down to $372,681. However, she would need to pay a flat fee of $191,811 to the third party plus an additional $2.16 per unit that they produce for her.

How many units would Abby have to sell to be indifferent between the two options (i.e., at what Q are the two options equally expensive?

Round your answer to the nearest whole number.

B. Continued from the previous question:

Abby expects to produce 125,000 units every year for the foreseeable future. Should Abby accept the third party's offer to outsource production?