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question 22

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Use the information below to answer the following question(s) .
A small automotive parts manufacturer is evaluating opening a new manufacturing plant for assembly of its battery chargers line.The location being considered has a monthly fixed cost of $42,000 and a variable cost of $3 per charger.Chargers sell for $ 7 each.
-The other option (in addition to the option of opening a new manufacturing plant) being considered is subcontracting the work to an external vendor.This option has a monthly fixed cost of $6,000 and a variable cost of $5 per charger.Chargers continue to sell for $7 each.What is the break-even point for the subcontracting option in units per month?


Definitions:

Hilde Bruch

A German-American psychiatrist and psychoanalyst best known for her pioneering work in the study of eating disorders, including anorexia nervosa and obesity.

Eating Disorders

Mental health disorders characterized by abnormal or disturbed eating habits, such as anorexia or bulimia.

Ineffective Parents

Caregivers who struggle to provide the necessary support, guidance, or discipline to their children.

Ineffective Parenting

Parenting practices that fail to promote the emotional, physical, or social wellbeing of the child.

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