Two alternatives are being considered for a customers order

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Two alternatives are being considered for a customer's order whose anticipated volume is not yet know. If the firm produces in-house, the fixed cost is $340,000 and variable cost is $2.90 per unit. If the firm chooses to outsource, it will incur a fixed of $275,000 and variable cost is $3.50 per unit. Determine the breakeven quantity and a decision rule of when to outsource.

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Reference no: EM13762726

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