Two alternatives are being considered for a customer's order whose anticipated volume is not yet know. If the firm produces in-house, the fixed cost is $340,000 and variable cost is $2.90 per unit. If the firm chooses to outsource, it will incur a fixed of $275,000 and variable cost is $3.50 per unit. Determine the breakeven quantity and a decision rule of when to outsource.
Please work out the problem step by step