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Management Studies

Two alternative are being considered for a customer's order whose anticipated volume is not yet known. if the firm produces in-house, the fixed cost is $340,000 and variable cost is $2.90 per unit. if the firm chooses to outsource, it will incur a fixed of $275,000 and variable cost is $3.50 per unit. Determine the break even quantity and a decision rule of when to outsource. please explain so I can understand the answer.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93121488

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