Given the following make-buy information, what would be the break-even point? Make Option
Buy Option
Fixed Costs
$7500
$1500
Variable Costs
$ 4
$ 9
A)1200 units
B)1708 units
C)690 units
D)460 units

Question

Quizplus · Accepted Answer

The break-even point is calculated by equating the total costs of both options. For the make option: Total Cost = $7500 + $4x. For the buy option: Total Cost = $1500 + $9x. Setting them equal gives $7500 + $4x = $1500 + $9x. Solving for x gives x = 1200 units.

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