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Curve Company has collected the following information: Cost to buy one unit $48 Production costs per unit: Direct materials $22 Direct labor $16 Variable manufacturing
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Curve Company has collected the following information:
Cost to buy one unit $48 Production costs per unit: Direct materials $22 Direct labor $16 Variable manufacturing overhead $2 Total fixed manufacturing overhead $190,000 What level of production is needed for Curve to be indifferent between making or buying the part, assuming it can eliminate $150,000 of fixed costs?
22,500 units
16,250 units
13,000 units
18,750 units
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