Use This Scenario to Answer the Following Questions

Multiple Choice

Use this scenario to answer the following questions.
A company must decide if it will make or buy an item it needs. The company can make the item for $10 per unit, but must invest $15,000 in tooling to achieve that capability. Alex Rogo has quoted a total price of $12 per unit to supply the quantity required (assume their fixed costs are included in the quoted price) .
-Refer to the instruction above. What is the break-even quantity in this situation?

A) 6,500 units
B) 7,000 units
C) 7,250 units
D) 7,500 units