Question 1149091
let x equal the number of units.
your break even point is when 8x = 40,000 + 5.5x.
subtract 5.5x from both sides of this equation to get:
2.5x = 40,000
solve for x to get x = 40,000 / 2.5 = 16,000.
the break even point is when 16,000 units are purchased or made.
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.
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.
it's cheaper to purchase them rather than to make them when the number of units required is 15,000.