What is the break-even quantity in this make-or-buy decision

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A U.S. company is currently producing a product in house with a yearly fixed cost of $4 million and a variable cost of $5 per unit. A Chinese subcontractor can produce the product with equal quality for a yearly fixed cost of $5 million and a variable cost of $3 per unit. What is the break-even quantity in this make-or-buy decision?

Reference no: EM13898961

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