Industrial Products, Inc. has two alternatives for manufacturing $12,000$ industrial $100-$horse power electric motors per year. If done in$-$house, fixed cost would be $$2,100,000$ with variable cost at $$6,800$ per unit. Alternative two is to outsource for a total cost of $$7,300$ per unit.

What is the break$-$even quantity? Round your answer to the nearest whole number.

motors

Should the firm make$-$in$-$house or outsource? Round your answers to the nearest dollar.

Total cost if done in$-$house: $

Total cost if outsourced: $

So$,$ the firm can save $

by

$-$Select$-$

$.$

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