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Suppose that the cost structures of the buy and the make choices are as follows: Costs Make Buy Fixed Cost $60,000 $4,000 Variable Cost $5
Suppose that the cost structures of the buy and the make choices are as follows:
Costs | Make | Buy |
Fixed Cost | $60,000 | $4,000 |
Variable Cost | $5 | $8 |
Calculate the breakeven point between make and buy.
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