invest $$45,000$ in capital equipment and estimates that the parts cost $$6$ each.

The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis below.

Open spreadsheet

Questions

a$.$ Assuming that cost is the only criterion, use break$-$even analysis to determine whether the firm should make or buy the item. quantity? Round your answer to the nearest whole number.

units

What is the total cost at the break$-$even point? Round your answer to the nearest dollar.

$ $$

The firm should $$ the item.

b$.$ Calculate the total costs for both options at $18,000$ units. Round your answers to the nearest dollar.

Total cost $($make option$)$: $ $$

Total cost $($buy option$)$: $ $$

What is the cost savings for choosing the cheaper option? Round your answer to the nearest dollar.

$ $$