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Give typed full explanation  Industrial Products, Inc. has two alternatives for manufacturing 12,000 industrial 100-horse power electric motors per year. If done in-house, fixed cost would be $2,100,000 with variable cost at $6,800 per unit. Alternative two is to outsource for a total cost of $7,300 per unit.         a. What is the break-even quantity?             b. Should the firm make-in-house or outsource?

Give typed full explanation  Industrial Products, Inc. has two alternatives for manufacturing 12,000 industrial 100-horse power electric motors per year. If done in-house, fixed cost would be $2,100,000 with variable cost at $6,800 per unit. Alternative two is to outsource for a total cost of $7,300 per unit.         a. What is the break-even quantity?             b. Should the firm make-in-house or outsource?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Give typed full explanation 

Industrial Products, Inc. has two alternatives for manufacturing 12,000 industrial 100-horse power electric motors per year. If done in-house, fixed cost would be $2,100,000 with variable cost at $6,800 per unit. Alternative two is to outsource for a total cost of $7,300 per unit.

        a. What is the break-even quantity?    

        b. Should the firm make-in-house or outsource?

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