The Vera Molding company has two alternatives for meeting a customer requirement for 9,000 units of specialty molding. If done in-house, the fixed cost would be $350,000 with variable cost at $30 per unit. Alternative two is to outsource for a total cost of $80 per unit.
a. What is the breakeven quantity?
b. Should the firm make the 9,000 units in-house or outsource?