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Company XYZ has the following two options to produce their products: In-house production requires $150,000 overhead cost and $45 parts & labour cost per unit
Company XYZ has the following two options to produce their products:
- In-house production requires $150,000 overhead cost and $45 parts & labour cost per unit
- Outsource production requires $120,00 overhead cost but $60 parts & labour cost per unit
What is the break even production quantity for the company? Show your calculation.
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