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A Software Company That Sells Its Software Pre-Installed in Personal

question 78

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A software company that sells its software pre-installed in personal computers is considering making its own computers instead of purchasing them from the Mega-Chip Company.To assemble their own computers could cost $1,000,000 in fixed costs and $100 per unit in variable costs.The company currently buys PCs for $1200,with no fixed costs.What is the break-even quantity?


Definitions:

Mounting Base

A structure or frame that supports and secures a mechanical or electrical device in its operating position.

Parts

Parts refer to the individual components or pieces that, when assembled, form a complete machine, system, or device.

Magnet Wire

A type of insulated electrical wire typically made of copper or aluminum, used in making coils or windings in electrical components.

Insulation

Materials used to electrically isolate conductors or components, preventing unwanted current flow and ensuring safety.

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