Sunbeam Corporation manufactures gas grills. Next year's production is expected to be 20,000 units of Model Q. Currently, the company manufactures a searing attachment to cook steaks. One searing attachment is required for each Model Q grill. Sunbeam has received an offer from a vendor to supply any number of searing attachments at $15.00 per grill. This year's production costs were prepared by the accounting intern, a reliable EMU student.

current year per unit production costs for searing attachment
number of units produced current year			18,000
direct material			$4.20
direct labor			$3.90
machine rental*			$2.10
plant administration, taxes and insurance**			$2.80
production manager's salary***			$3.30
total per unit production cost for current year			$16.30

* This is a specialized machine for the production of searing attachments. It is an annual rental cost. If the searing attachments are purchased, Sunbeam does not have to rent the machine.

** These are generally fixed costs that do not vary systematically with production volume.

*** If searing attachments continue to be manufactured in-house, he will remain at his current job. If searing attachments are purchased, he will move to another division within the company. In either case, the current production manager will receive an 8.0% salary increase next year. If searing attachments continue to be manufactured in-house, the other division will have to hire a new manager at a salary of $65,000.

data for next year
expected volume of searing attachments			20,000
per unit searing attachment price from vendor			$15.00
salary of new production manager at other division			$65,000
saLary increase for current production manager			8.0%

Complete the following template on a per unit basis for buy vs make for next year.

			make	buy
direct material
direct labor
purchase price of searing attachment
machine rental
plant administration, taxes and insurance
production manager's salary
total cost

At what volume will the cost to make equal the cost to buy? Show your work.

break even volume (# units)