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The American Snow - blower Company ( ASC ) has the option to make or buy a component part for one of its deluxe snow

The American Snow-blower Company (ASC) has the option to make or buy a component part for one of its deluxe snow-blower models. The annual requirement is 8,200 units. A supplier is able to supply the parts for $20 per piece. ASC estimates that it will cost $850 to prepare the contract with the supplier. To make the parts in-house, ASC must invest $100,000 in capital equipment. They estimate it will cost $13.50 per piece to produce the part in-house. Carry all calculations out to two decimal place. What is the total cost at the breakeven quantity? (your answer should be rounded to two decimal places AND do not include the '$' symbol in your answer)

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