A tech company is evaluating whether to produce a critical circuit board in-house or purchase it from an external supplier to mitigate supply chain risk. The circuit board has an expected annual usage of 10,000 units. If bought from a reliable supplier, the cost is $30 per unit with a guaranteed delivery time of one month. Alternatively, the company can manufacture the circuit board in-house. The in-house production involves purchasing equipment costing $200,000 and producing the circuit board at a variable cost of $8 per unit. Labor and other operating costs are estimated to be $50,000 per year over the study period of 4 years. Salvage value is estimated at 15% of the equipment's first cost, and the MARR is 10% per year. Determine-
(a) The breakeven quantity.
(b) Whether it is more cost-effective to make or buy at the expected usage level.