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Calculate the breakeven point

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The Fox Time Travel (Fox TT) organization offers flux capacitors to time machine makers. This year Fox TT is on track to offer 12,500 units. They are determining a 25% expansion for the next year. They right now outsource a circuit board to an outside producer, Biff Electronics, who charges Fox TT $15,000 every year for framework support and upkeep. They offer each of the circuit sheets to Fox TT for $25.00 each with an extra charge of $1.00 per unit for transportation. Fox TT is considering making these circuit sheets in-house. They have investigated the expenses and found the accompanying: Machines cost $125,000, floor fortification and machine establishments will cost $10,000, and start-up expenses will be $5,000. Fox TT can deliver this circuit board at a work expense of $3.00 per unit and crude materials expense of $15.00 per unit.

1) Calculate the Breakeven point

2) Decide what Fox TT ought to do, Continue to Buy or put resources into the changeover and Make the circuit sheets. State which ought to happen, Make or Buy and clarify why.

Reference no: EM131057780

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