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 $345,000with 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 thenearest whole number.unitsDetermine 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 $

Contribution margin = $ (75-25) = $50Fixed Cost = $345,000Break even quantity = 345,000 / 50 = 6900…

Answered: A company has two alternatives for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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