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The ABc Company has developed a new product and is going to make this product in - house. To be able to do this, they
The ABc Company has developed a new product and is going to make this product inhouse. To be able to do this, they need to get a new equipment to be able to do the special type of processing required by the new product design. They have found two suppliers that sell such equipment. They are wondering which supplier they go ahead with. The costs associated with each option are:Fixed Cost: Supplier A$ and Supplier B$Variable Cost: Supplier A$ and Supplier B$What is the breakeven quantity at which the company will be indifferent between the two options?
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