A company has two alternatives for meeting a customer requirement for 10,000 units of a specialty molding. If done in-house, fixed cost would be $345,000 with variable cost at $25 per unit. Alternative two is to outsource for a total cost of $75 per unit. Determine the break-even point. Round your answer to the nearest whole number. units Determine if they should make the item in-house or outsource it. Round your answers for total costs and savings to the nearest dollar. Total cost if done in-house: $ Total cost if outsourced: $ So, the company should do the work in-house v and save $
A company has two alternatives for meeting a customer requirement for 10,000 units of a specialty molding. If done in-house, fixed cost would be $345,000 with variable cost at $25 per unit. Alternative two is to outsource for a total cost of $75 per unit. Determine the break-even point. Round your answer to the nearest whole number. units Determine if they should make the item in-house or outsource it. Round your answers for total costs and savings to the nearest dollar. Total cost if done in-house: $ Total cost if outsourced: $ So, the company should do the work in-house v and save $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![A company has two alternatives for meeting a customer requirement for 10,000 units of a specialty molding. If done in-house, fixed cost would be $345,000
with variable cost at $25 per unit. Alternative two is to outsource for a total cost of $75 per unit. Determine the break-even point. Round your answer to the
nearest whole number.
units
Determine if they should make the item in-house or outsource it. Round your answers for total costs and savings to the nearest dollar.
Total cost if done in-house: $
Total cost if outsourced: $
So, the company should do the work in-house ✓
and save $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f10230f-de28-4b13-be4f-040d677e1c39%2F97439692-ad6b-4e5a-b452-3faa9633ad1f%2F8j1268y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company has two alternatives for meeting a customer requirement for 10,000 units of a specialty molding. If done in-house, fixed cost would be $345,000
with variable cost at $25 per unit. Alternative two is to outsource for a total cost of $75 per unit. Determine the break-even point. Round your answer to the
nearest whole number.
units
Determine if they should make the item in-house or outsource it. Round your answers for total costs and savings to the nearest dollar.
Total cost if done in-house: $
Total cost if outsourced: $
So, the company should do the work in-house ✓
and save $
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