Which option should the company pursue

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Reference no: EM13250887

a manufacturer has identified the following options for obtaining a machined part: It can buy the part at $200 per unit (including materials); it can make the part on a numerically controlled machine at 65$ per unit (including materials); or it can make the part on machining center at $17 per unit (including materials). There is negligble fixed cost if the item is purchased, a numerically controlled machine costs $124,000, and a machining center costs $217,000.

a) using break even analysis, which option should the company pursue?
b) show the graph and all your calculations.

Reference no: EM13250887

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