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Purple Reign is a clothing manufacturer/retailer based in Minneapolis, MN. The company started by making and selling t-shirts with images of the musician Prince on

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Purple Reign is a clothing manufacturer/retailer based in Minneapolis, MN. The company started by making and selling t-shirts with images of the musician Prince on them. Business picked up and the company began selling outfits that were inspired by Prince's wardrobe. Additionally, the company has entered into collaborations with current musicians and influencers to sell apparel inspired or designed by them. These artists or influencers include Post Malone, Olivia Rodrigo, and The Kid LAROI. Business has increased such that a few years ago Purple Reign brought warehousing and distribution in-house to package and ship customer orders. With business continuing to expand, the company now is making the decision to continue to order boxes from box manufacturers or buy a corrugate machine that will manufacturer boxes to customized sizes on demand. The company expects to have 120,000 orders in 2022 and each order will use one box. When buying boxes from manufacturers. the company needs to buy different size boxes to account for different orders. This pushes the average cost of each box to $.47. The box machine Purple Reign is considering costs $35,000. but lowers the variable cost of each box to $.21 because the company is able to manufacture each box on-demand. If the company buys boxes from manufacturers, Purple Reign likes to have a contract with each to ensure needs are met to certain specifications. Purple Reign can have all contracts negotiated for $3,000. Based on this information, and considering only the information we have based on 2022 projects, should Purple Reign purchase a box machine and make boxes on demand or should the company continue to buy boxes from outside providers? For 2022. what is the best economic decision? What is the breakeven quantity based on the above information? Breakeven quantities are the quantity in which it would be the same amount of money to make or buy something. Round up to the nearest whole unit

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