Question Workspace
 Check My Work (1 remaining)
 eBook
 A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below:
 For in-house manufacturing:
 Annual fixed cost = $85,000
 Variable cost per part = $130
 For purchasing from supplier:
 Purchase price per part = $140
 If demand is forecast to be 2,500 parts, should the firm make the part in-house or purchase it from a supplier? Round your answer to the nearest whole number.
 Break-Even Quantity: 
 parts
 The best decision is to 
 -Select-
 .
 The marketing department forecasts that the upcoming year’s demand will be 2,500 parts. A new supplier offers to make the parts for $138 each. Should the company accept the offer? Round your answer to the nearest whole number.
 New Break-Even Quantity: 
 parts
 The best decision is to 
 -Select-
 .
 What is the maximum