Method b will involve purchasing the part from a


A company is considering two methods for obtaining a certain part. Method A will involve purchasing a machine for $40,000 with a life of 5 years, a $2,400 salvage value, and a fixed annual operating cost of $8,000. Additionally, each part produced by the method will cost $8.

Method B will involve purchasing the part from a subcontractor for $30 per part. At an interest rate of 10% per year, determine the number of parts per year required for the two methods to break even. (Enter your answer as a number without the dollar $ sign.)

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Business Management: Method b will involve purchasing the part from a
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