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Use the Following Information to Answer the Questions Below

question 98

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Use the following information to answer the questions below.
You currently make a part for old equipment at a cost of $20 / unit. The annual fixed cost for this equipment is $50,000. You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year (see table) .
Use the following information to answer the questions below. You currently make a part for old equipment at a cost of $20 / unit. The annual fixed cost for this equipment is $50,000. You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year (see table) .    -Refer to the instruction above. What is the break even quantity between buying and making? A)  30,000 units per year B)  40,000 units per year C)  50,000 units per year D)  60,000 units per year
-Refer to the instruction above. What is the break even quantity between buying and making?

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Definitions:

Ellipse

A geometric shape representing all points for which the sum of the distances to two fixed points (foci) is constant, often used to illustrate orbits in astronomy or confidence regions in statistics.

Line

In statistics and data analysis, often refers to a trend line plotted through data points on a graph, representing the direction and strength of a relationship between variables.

Studying Hours

A measure of the amount of time spent on studying or academic activities.

Mistakes

Errors or inaccuracies that occur due to oversight or misunderstanding in a given context.

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