Power Notebooks, Inc. plans to manufacture a new line of notebook computers. Management is trying to decide whether to purchase the LCD screens for the computers from an outside supplier or to manufacture the screens in-house. The screens cost $150 each from the outside supplier. They charge an administration fee of $200,000. To set up the assembly process required to produce the screens in-house would cost $500,000. The company could then produce each screen for $75. The number of notebooks that eventually will be produced (Q) is unknown at this point.

1. What should the level of LCD screens (Q) be if Power Notebooks should be manufacturing the LCD screens? (Ensure your answer is in cell C6)

2. Create a chart showing the crossover of Make and Buy. Make sure to appropriately label axis. Your breakeven point should be near the middle of your graph. Use the range of Production Qty to be 1000 to 9000 (In 1000 increments). Label your chart Make-Buy.

PLEASE SHOW ME HOW TO DO THIS IN EXCEL. I WOULD ALSO GREATLY APPRECIATE IT IF YOU COULD SHOW WHAT FORMULAS TO USE.