The Vera Molding company has two alternatives for meeting a customer requirement for $9,800$ units of a specialty molding. If done in$-$house,

fixed cost would be $$390,000$ with variable cost at $$30$ per unit. Alternative two is to outsource for a total cost of $$80$ per unit.

a$.$ What is the break$-$even quantity? Round your answer to the nearest whole number.

units

b$.$ Should the firm make the $9,800$ units in$-$house or outsource?

Firm should produce the molding