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( A ) Breakeven Analysis F C A + ( V C A * * Q ) = F C B + ( V C

(A) Breakeven Analysis FCA+(VCA**Q)=FCB+(VCB**Q)
A buyer has the option of buying a component from two suppliers. The fixed cost and variable cost of supplier A are $2,500 and $5.60 per unit, respectively. The fixed cost and variable cost of supplier B are $5,800 and $2.40 per unit, respectively. The total requirement of the component is 12,500 units.
(1a) What is the breakeven quantity?
(1b) What is the total cost at breakeven quantity?
(1c) What is the total cost of supplier A at the quantity needed?
(1d) What is the total cost of supplier B at the quantity needed?
(1e) If the total demand is 800 units, which supplier should the company buy from? Why?
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