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You are given the following information: Find the break-even quantity and the total cost at the break-even point Costs Make Option Buy Option Fixed Cost
- You are given the following information:
- Find the break-even quantity and the total cost at the break-even point
| Costs | Make Option | Buy Option |
| Fixed Cost | $125,000 | $5,000 |
| Variable Cost | $15 | $17 |
- If the requirement is 150,000 units, is it more cost-effective for the firm to buy or make the components? What is the cost savings for choosing the cheaper option?
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IT Audit Fundamentals Study Guide
Authors: Isaca
1st Edition
1604209402, 978-1604209402
