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A retail company is evaluating whether to outsource its product distribution to a third - party logistics provider. The fixed costs of maintaining its own

A retail company is evaluating whether to outsource its product distribution to a third-
party logistics provider. The fixed costs of maintaining its own distribution network
amount to $300,000 per year, while the variable cost per unit shipped is $4. The logistics
provider offers to handle the distribution for $6 per unit shipped. Calculate the
breakeven point between outsourcing and maintaining their own distribution. If they
need to distribute 1 unit more than that number, is it cheaper to do it themselves or
outsource it?

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