Curve Company has collected the following information:
Cost to buy one unit $48
Production costs per unit:
Direct materials $22
Direct labor $16
Variable manufacturing overhead $2
Total fixed manufacturing overhead $190,000
What level of production is needed for Curve to be indifferent between making or buying the part, assuming it can eliminate $150,000 of fixed costs?
22,500 units
16,250 units
13,000 units
18,750 units