The Wonderful Manufacturing Co. is considering the outsourcing of one of its standard parts to free up capacity for other, more important items. Wonderful makes the part for $13.50 and requires 30,000 of the parts per year, with a fixed-cost contribution of $4,000 per year. Their purchasing executives have identified one supplier that can make the part for $19 per unit but requires an up-front, one-time contractual fee of $1,250.
-Calculate the break-even point.

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The Answer of The Wonderful Manufacturing Co. is considering the outsourcing of one of its standard parts to free up capacity for other, more important items. Wonderful makes the part for $13.50 and requires 30,000 of the parts per year, with a fixed-cost contribution of $4,000 per year. Their purchasing executives have identified one supplier that can make the part for $19 per unit but requires an up-front, one-time contractual fee of $1,250.
-Calculate the break-even point.