Suppose a manufacturer has identified the following options for o

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Suppose a manufacturer has identified the following options for obtaining a machine

Suppose a manufacturer has identified the following options for obtaining a machine part: Buying the part at $200 per unit. Making the part on a numerically controlled machine at $75 per unit (including materials), in which the machine costs $80,000. Making the part in a machining center at $15 per unit (including materials), in which the machining center costs $200,000. What is the break even value in terms of dollar-value ($) and volumes of units sold?

abhinav behal 02-Mar-2020

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Suppose a manufacturer has identified the following options for obtaining a machine

Suppose a manufacturer has identified the following options for obtaining a machine

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