The Vera Molding company has two alternatives for meeting a customer requirement for 9,200 units of a specialty molding. If done in-house, fixed cost would be $284,000 with variable cost at $30 per unit. Alternative two is to outsource for a total cost of $70 per unit. What is the break-even quantity? Round your answer to the nearest whole number. units Should the firm make the 9,200 units in-house or outsource? Firm should produce the molding .

The Vera Molding company has two alternatives for meeting a customer requirement for 9,200 units of a specialty molding. If done in-house, fixed cost would be $284,000 with variable cost at $30 per unit. Alternative two is to outsource for a total cost of $70 per unit. What is the break-even quantity? Round your answer to the nearest whole number. units Should the firm make the 9,200 units in-house or outsource? Firm should produce the molding .

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Question

100%

What is the break-even quantity? Round your answer to the nearest whole number.

units
Should the firm make the 9,200 units in-house or outsource?

Firm should produce the molding .

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Step 1: the break even point = fixed cost/contribution margin = 7100

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Step 2: Since the total cost on in-house is less than outsource, Firm should produce the molding In-house.

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