(Answered) Manager of firm abc is trying to decide whether to produce

Management Studies

Manager of firm ABC is trying to decide whether to produce a certain product internally. Internal production would entail a variable cost of $17 per unit if production is 10,000 units or less, but $15 per unit (for all units produced) if production is greater than 10,000 and an annual fixed cost of $350,000 (irrespective of the production volume). The selling price is $25 per unit. What is the break even volume of this product?

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