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Say you work for a fictitious company, Shoez, and they have in-house manufacturing capabilities. In fact, they prefer to make in-house. When market demand is
Say you work for a fictitious company, Shoez, and they have in-house manufacturing capabilities. In fact, they prefer to make in-house. When market demand is high, Shoez outsources with a local supplier. Recently, the company developed a limited line shoe for track athletes and called them GunRock. You are new to the company, and your boss asked you to determine if GunRock should be made in-house or be outsourced. Using the data below, calculate the breakeven point quantity. Costs Fixed Cost ($) Variable Cost ($/unit) Annual Requirements (units) Outsource 14,000 2 10,000 in-house 5,000 4
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