Company currently purchases gear assembly

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Reference no: EM131791108

Stan Fawcett's company currently purchases a gear assembly from Salt Lake Supply, Inc. at $3.80 per unit with a minimum order of 3000 units. Stan is considering instead of producing the gear assembly himself. He estimates that production it himself will cost $12,000 to set up the process and the $1.75 per unit for labor and materials.

Use Excel to calculate the crossover point between the two options: buy or make.

Create a graph to plot the total cost of each option and show the crossover point.

Reference no: EM131791108

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