Company wants to introduce a new product. The company estimates the variablecosts would be $8 and the fixed costs would be $70,000.
1. A foreign firm has offered to produce the product at $10/unit. if the selling price is to be set at $20, what would be the breakeven point the decision to make or buy
if demand is estimated to be greater than this breakeven point what should be done, make or buy?
What i have so far: Pm=(20-8)Q-70000=(20-10)-0=Pa theirfor Q=
Not sure if correct though now sure how to work through this equation