Given the following make-buy information,what would be the break-even point?
$$\begin{array} { l c c }
& \text { Minke Option } & \text { Guy Option } \
\hline \text { Fixed Costs } & \text { \$7500 } & \$ 1500 \
\text { Variable Costs } &\$ 4 &\$ 9
\end{array}$$
A) 1200 units
B) 1708 units
C) 690 units
D) 460 units

Question

Given the following make-buy information,what would be the break-even point?
$$\begin{array} { l c c } 
& \text { Minke Option } & \text { Guy Option } \
\hline \text { Fixed Costs } & \text { \$7500 } & \$ 1500 \
\text { Variable Costs } &\$ 4 &\$ 9
\end{array}$$
A) 1200 units
B) 1708 units
C) 690 units
D) 460 units

Quizplus · Accepted Answer

The break-even point is calculated by equating the total costs of both options: $7500 + 4x = 1500 + 9x$. Solving for $x$, we get $x = 1200$ units.

Given the Following Make-Buy Information,what Would Be the Break-Even Point