Give typed full explanation Industrial Products, Inc. has two alternatives for manufacturing 12,000 industrial 100-horse power electric motors per year. If done in-house, fixed cost would be $2,100,000 with variable cost at $6,800 per unit. Alternative two is to outsource for a total cost of $7,300 per unit. a. What is the break-even quantity? b. Should the firm make-in-house or outsource?

Give typed full explanation Industrial Products, Inc. has two alternatives for manufacturing 12,000 industrial 100-horse power electric motors per year. If done in-house, fixed cost would be $2,100,000 with variable cost at $6,800 per unit. Alternative two is to outsource for a total cost of $7,300 per unit. a. What is the break-even quantity? b. Should the firm make-in-house or outsource?

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter6: Target Markets: Segmentation And Evaluation

Section: Chapter Questions

Problem 4SC

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