Data

fixed $ 10,000,000.00 Total fixed cost

variable cost $ 1,000.00 Total variable cost
price $ 2,000.00 Total sales revenue
forecast 100000

Production number 10000 /Month Profit

Q 500 1000 1500 2000

Cost $ 10,500,000.00 ### ### $ 12,000,000.00
Revenue $ 1,000,000.00 $ 2,000,000.00 ### $ 4,000,000.00
Results
$ 10,000,000.00
$ 10,000,000.00
$ 20,000,000.00

2500 3000 3500 4000 4500 5000 5500

$ 12,500,000.00 ### ### ### ### ### ###
$ 5,000,000.00 ### ### ### ### ### ###
6000 6500 7000 7500 8000 8500 9000 9500 10000 10500
### ### ### ### ### ### ### ### ### ###
### ### ### ### ### ### ### ### ### ###
11000 11500 12000 12500 13000 13500 14000 14500 15000
### ### ### ### ### ### ### ### $ 25,000,000.00
### ### ### ### ### ### ### ### $ 30,000,000.00
15500 16000 16500 17000 17500 18000 18500 19000 19500 20000
$50,000,000.00
### ### ### ### ### ### ### ### ### ###
$45,000,000.00
### ### ### ### ### ### ### ### ### ###
$40,000,000.00
$35,000,000.00
$30,000,000.00
$25,000,000.00
$20,000,000.00
$15,000,000.00
$10,000,000.00
$5,000,000.00
$-
0 0 0 0
50 200 350 500
 Chart Title
0,000,000.00 20500 21000 21500 22000 22500 23000 23500 24000 24500 25000
5,000,000.00 ### ### ### ### ### ### ### ### ### ###
0,000,000.00 ### ### ### ###
5,000,000.00
0,000,000.00
5,000,000.00
0,000,000.00
5,000,000.00
0,000,000.00
5,000,000.00
$-
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
50 200 350 500 650 800 950 100 250 400 550 700 850 000 150 300 450 600
1 1 1 1 1 1 2 2 2 2 2

Cost Revenue
25500 26000
 Data
Fixed cost produce $ 100,000.00 Total fixed cost produce
Variable cost produc $ 75.00 total variable cost produce
cost purchase $ 100.00 Total cost purchase

Demand 3000 purchse from outside

Production number 4000

Q 500 1000 1500 2000

Total cost produce $ 137,500.00 $ 175,000.00 $ 212,500.00 $ 250,000.00
Total cost purchase $ 50,000.00 $ 100,000.00 $ 150,000.00 $ 200,000.00

Conclusion break even is 4000 units

If company requires less than 4000 units, they should purchase. If they requires more than 4000 ones, they should make it.
 results
$ 100,000.00
$ 300,000.00
$ 400,000.00

2500 3000 3500 4000 4500 5000 5500

$ 287,500.00 $ 325,000.00 $ 362,500.00 $ 400,000.00 $ 437,500.00 $ 475,000.00 $ 512,500.00
$ 250,000.00 $ 300,000.00 $ 350,000.00 $ 400,000.00 $ 450,000.00 $ 500,000.00 $ 550,000.00

4000 ones, they should make it.

Chart Title
$800,000.00
$700,000.00
$600,000.00
$500,000.00
$400,000.00
$300,000.00
$200,000.00
$100,000.00
$-
500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000

Total cost produce Total cost purchase

 6000 6500 7000
$ 550,000.00 $ 587,500.00 $ 625,000.00
$ 600,000.00 $ 650,000.00 $ 700,000.00

000 5500 6000 6500 7000

chase