Manor, Inc. currently manufactures 1,000 subcomponents per month in one of its factories. The unit costs to produce the subcomponents are:

	Per unit
Direct materials		$	53
Direct labor			155
Variable manufacturing overhead			80
Fixed manufacturing overhead			107
Total unit cost		$	395

Manor is considering purchasing the subcomponents from an outside supplier, who normally charges $313 per unit. The supplier also has an "Exclusive Buyer's Club" which costs $30,000 per month to join, but whose members can purchase the subcomponents for $263 per unit. Fixed overhead is not avoidable. How many units would Manor need to order per month to make it worth it to join the "Exclusive Buyer's Club"?

Multiple Choice

• 1,200

• 1,513

• 990

• 780