A company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding.If done in-house, fixed cost would be $350,000 with variable cost at $30 per unit.Alternative two is to outsource for a total cost of $80 per unit.Determine the breakeven quantity and determine if they should make the item in-house or outsource it.

Question

Quizplus · Accepted Answer

The Answer of A company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding.If done in-house, fixed cost would be $350,000 with variable cost at $30 per unit.Alternative two is to outsource for a total cost of $80 per unit.Determine the breakeven quantity and determine if they should make the item in-house or outsource it.

A Company Has Two Alternatives for Meeting a Customer Requirement