Solved

A Company Has Two Alternatives for Meeting a Customer Requirement

Question 30

Essay

A company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding.If done in-house, fixed cost would be $350,000 with variable cost at $30 per unit.Alternative two is to outsource for a total cost of $80 per unit.Determine the breakeven quantity and determine if they should make the item in-house or outsource it.

Correct Answer:

verifed

Verified

VC1 = $30
VC2 = $8...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions