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Omaha manufacturing manager is considering outsourcing the shipping operation to a logistics provider experienced in the electronics industry. Its annual fixed costs of the shipping
Omaha manufacturing manager is considering outsourcing the shipping operation to a logistics provider experienced in the electronics industry. Its annual fixed costs of the shipping operation are $2,500,000. The estimated variable cost of shipping the scales with the in-house operation is $3.50 per ton-mile. If it outsourced the operation to Alabama Freight, the annual fixed costs of the infrastructure and management time needed to manage the contract would be $500,000. Alabama Freight would charge $12.50 per ton-mile. What is the break-even quantity in ton-miles? Group of answer choices 222,222 333,333 220,210 310,500 352,200
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