document.write( "Question 1149091: Assume that a manufacturer can purchase a needed component from a supplier at a cost of $8 per unit, or it can invest $40,000 in equipment and produce the item at the cost of $5.50 per unit.\r
\n" ); document.write( "\n" ); document.write( "i) Determine the quantity for which total costs are equal for the make and buy alternatives.
\n" ); document.write( "ii) What is the minimum cost alternative if 15,000 units are required? What is the minimum cost?
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Algebra.Com's Answer #770423 by Theo(13342)\"\" \"About 
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let x equal the number of units.
\n" ); document.write( "your break even point is when 8x = 40,000 + 5.5x.
\n" ); document.write( "subtract 5.5x from both sides of this equation to get:
\n" ); document.write( "2.5x = 40,000
\n" ); document.write( "solve for x to get x = 40,000 / 2.5 = 16,000.
\n" ); document.write( "the break even point is when 16,000 units are purchased or made.
\n" ); document.write( "at 16,000 units, the cost is 8 * 16,000 = 128,000 when purchased, and the cost is 40,000 + 5.5 * 16,000 = 128,000 when made.
\n" ); document.write( "when 15,000 units are required, the cost is 8 * 15,000 = 120,000 when purchased and the cost is 40,000 + 5.5 * 15,000 = 122,500 when made.
\n" ); document.write( "it's cheaper to purchase them rather than to make them when the number of units required is 15,000.\r
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