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Quality Metalcraft is a company in Michigan that makes prototype parts for GM and Ford. The QMC manager is putting together a Request for

Quality Metalcraft is a company in Michigan that makes prototype parts for GM and Ford. The QMC manager is putting together a Request for Proposal (RFP). A) You have been asked by this manager to determine the break-even price for 4 runs (400 units-each run is 100 parts). What is it? B) If GM likes the parts, they may extend the contract by 2 more runs. What is the break-even point for running both the 5th and 6th runs together? Quantity Marginal Cost per run Total Cost Average Cost per run $64 $122 $174 $64 $64 $61 $58 $55 $52 1 run 2 runs $58 3 runs $52 4 runs $46 $220 $260 5 runs $40 6 runs $34 $294 $49 A BI-

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