Determine the breakeven quantity for outsourcing

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Reference no: EM1363256

Nummer electric company can make a product in-house or outsource it. The fixed cost to produce it in-house is $72,000 abd each item costs $420 to produce. If out-sourced each item will cost $600. The items sell for $800.

Which is more profitable if the expected sales level is 200?

Which is more profitable if the expected sales level is 1000?

What is the breakeven quanityfor producing in-house?

Determine the breakeven quantity for outsourcing.

At what level of sales soes it become more profitable to produce in house rather than outsource?

Reference no: EM1363256

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