Find the break-even quantity

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Reference no: EM131810497

You are given the following information:

Costs	Make Option	Buy Option
Fixed Cost	$125,000	$5,000
Variable Cost	$15	$17

1. Find the break-even quantity and the total cost at the break-even point.

2. If the requirement is 150,000 units, is it more cost-effective for the firm to buy or make the components? What is the cost savings for choosing the cheaper option?

Reference no: EM131810497

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