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1. Simuelson industries can produce its own motors for a $32,000 fixed monthly cost and a $40 variable cost per unit. Alternatively, Simuelson industries can purchase the motors from an outside supplier for an extra fixed cost of $34,000 per month and a $30 variable cost per unit. What is the indifference point?
A. 130 Units B. 132 Units C. 200 Units D. 125 Units E. 129 Units
2. Using the information from question 9 what option should be chosen if monthly demand is 124 units?
A. Inhouse B. Outsource C. No Preferable Option D. Not enough information.
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