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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

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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 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... blur-text-image

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