make an item in-house, equipment costing $250,000 must be purchased. It will have a life of 4 years, annual operating cost of $80,000, and each unit will cost $40 to manufacture. Buying the item externally will cost $100 per unit. At i=15% per year, at what number of units needed per year will it be more economical to produce the item in-house?  Using Breakeven Analysis

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