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HELP! What level of production is needed for Bounce company to be indifferent between making...

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Accounting

HELP! What level of production is needed for Bounce company to be indifferent between making or buying the part, assuming it can eliminate $75,000 of fixed costs ?

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QUESTION 4 Not complete Points out of 1.00 P Flag question Bounce Company has collected the following information: Cost to buy one unit Production costs per unit: $24 Direct materials Direct labor Variable manufacturing overhead $10 $8 $1 $95,000 Total fixed manufacturing overhead What level of production is needed for Bounce to be indifferent between making or buying the part, assuming it can eliminate $75,000 of fixed costs? Select one: A. 15,000 units B. 16,250 units C. 13,000 units D. 12,500 units Check O

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