Use the Following to Answer the Questions Below

question 141

Multiple Choice

Use the following to answer the questions below.
You currently purchase a part used in your production process from an outside supplier,and have decided to begin making this part in-house.You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment.Cost information for these two options is as follows:

-Refer to the instruction above.What is the break even quantity between the two options?

• A)30,000 units per year
• B)40,000 units per year
• C)50,000 units per year
• D)60,000 units per year

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