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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

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"?

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