You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 / unit. You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year. The following table summarizes the details of this make versus buy decision.

ALTERNATIVE	FIXED COST	VARIABLE COST
Buy	$200,000 per year	$15 per unit
Make	$50,000 per year	$20 per unit

For what range of output would you prefer to buy?

20,001 - 30,000 units per year

10,001 - 20,000 units per year

0 - 10,000 units per year

30,001 or more units per year