Use the Following Scenario to Answer the Questions Below

Use the following scenario to answer the questions below.
A company must decide if it will make or buy an item it needs.The company can make the item for $10 / unit,but must spend $15,000 per year in tooling to do so.An outside firm has quoted a total price of $12 / unit to supply the quantity required.
-Refer to the instruction above.What is the break-even point in this situation?

A) 6,500 units
B) 7,250 units
C) 7,500 units
D) 8,000 units

Correct Answer:

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