The Vera Molding company has two alternatives for meeting a customer requirement for 9,500 units of a specialty molding. If done in-house, fixed cost would be $518,000 with variable cost at $20 per unit. Alternative two is to outsource for a total cost of $90 per unit. What is the break-even quantity? Round your answer to the nearest whole number. units Should the firm make the 9,500 units in-house or outsource? Firm should produce the molding .

The Vera Molding company has two alternatives for meeting a customer requirement for 9,500 units of a specialty molding. If done in-house, fixed cost would be $518,000 with variable cost at $20 per unit. Alternative two is to outsource for a total cost of $90 per unit. What is the break-even quantity? Round your answer to the nearest whole number. units Should the firm make the 9,500 units in-house or outsource? Firm should produce the molding .

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 18E: A company is considering a special order for 1,000 units to be priced at 8.90 (the normal price...

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