Demand be changed in order for outsourcing to become cheaper

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Reference no: EM13845941

Annual fixed costs are $900,000 and $800,000 for outsourcing and insourcing, respectively, and variable costs are $32 and $28 for outsourcing and insourcing, respectively. If current annual demand is 25,000 units, by how much must demand be changed in order for outsourcing to become cheaper?

reduce by more than 3,000 units

increase by more than 3,000 units

remain the same

increase to 200,000 units

Outsourcing is not an option

Reference no: EM13845941

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