Given the Following Make-Buy Information, What Would Be the Break-Even

question 36

Multiple Choice

Given the following make-buy information, what would be the break-even point? Make Option
Buy Option
Fixed Costs
$15000
$1250
Variable Costs
$ 5
$ 10

• A)917 units
• B)2875 units
• C)1083 units
• D)2750 units

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Definitions:

Assignment

The passing of property or rights from one individual to another.

Indorsement

The act of signing one's name on the back of a cheque or other negotiable instrument to make it payable to someone else.

Without Recourse

A term indicating that the holder of a financial instrument, such as a note or bill, cannot demand payment from the original issuer in case of default by the borrower.

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument, legally transferring ownership or authorizing a transaction.