Industrial Products, Inc. has two alternatives for manufacturing 14,000 industrial 100-horse power electric motors per year. If done in-house, fixedcost would be $3,000,000 with variable cost at $6,100 per unit. Alternative two is to outsource for a total cost of $7,700 per unit.a. What is the break-even quantity? Round your answer to the nearest whole number.motorsb. Should the firm make-in-house or outsource? Round your answers to the nearest dollar.Total cost if done in-house: $Total cost if outsourced: $So, the firm can save $by -Select-

Total cost refers to the overall expenses or expenditures that are associated with producing goods,…

Answered: industrial Products, Inc. has two…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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