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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 $2,800,000
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 $2,800,000 with variable cost at $6,100 per unit. Alternative two is to outsource for a total cost of $7,600 per unit. a. What is the break-even quantity? Round your answer to the nearest whole number. motors b. 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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Sure I can help you with this a What is the breakeven quantity The breakeven quantity is the number of units at which the total cost of inhouse production equals the total cost of outsourcing To calcu...Get Instant Access to Expert-Tailored Solutions
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