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 1 run $64 $64 $64 2 runs $58 $122 $61 3 runs $52 $174 $58 4 runs $46 $220 $55 5 runs $40 $260 $52 6 runs $34 $294 $49 " BI: 0 = = P 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 1 run $64 $64 $64 2 runs $58 $122 $61 3 runs $52 $174 $58 4 runs $46 $220 $55 5 runs $40 $260 $52 6 runs $34 $294 $49 " BI: 0 = = P