A business, located in a big city, can do an online criminal background check in-house for $1.74 per search with a fixed cost of $33,000. A third-party online security firm offered to do a similar security search for $10.00 per person with an annual service contract with STE. If STE's forecast is 3,400 searches next year, should STE continue to do the search in-house or accept the third-party offer? Use the Excel template Break-Even to determine the best decision. Round your answer for the breakeven quantity to the nearest whole number and round your answer for the amount of saving/loss to the nearest dollar.

QUESTION 1: Find The Breakeven Quantity: _____

Enter data only in yellow cells. Profitability Analysis Outsourcing Decision Technology Choice Decision Quantity 10,000 Quantity 12,000 Quantity 11,000 Cost Produce In-House Option A Fixed cost Unit cost | $100,000.00 $12.00 Fixed cost $250,000.00 Unit cost $20.00 Fixed cost Unit cost $200,000.00 $18.60 Outsource Option B Revenue Fixed cost Unit cost Fixed cost Unit cost $100,000.00 $21.00 Unit revenue $20.00 $35.00 Total Cost Total Revenue Net Profit Profit or Loss $220,000.00 $200,000.00 $20,000.00 Loss Total In-House Production Cost $490,000.00 Total Outsourced Cost $420,000.00 Cost difference (In-House - Outsourced) $70,000.00 Economical Decision Outsource Total Cost Option A Total Cost Option B Cost difference (Option A - Option B) Economical Decision $404,600.00 $331,000.00 $73,600.00 Option B