Question 1033967
i) 8x=5.50x+40000
2.5x=40000
x=40000/2.5=16000 units, at which total costs are equal.

ii)8x15000 units=$120000 
(15000x5.5)+40000=$122500 cost making the component oneself. The minimum cost is $120000 when buying the pre-made component, obviously!!!!!!!!!