Acompany has had the following production experience over the last 10 quarters for product p1:
quarterly production frequency
1,000 units 2
1,500 units 3
2,000 units 4
2,500 units 1
10
additional information for p1:
unit variable costs $ 7
quarterly unavoidable allocated fixed costs 40,000
a unit of p1 can be purchased from an outside supplier for $8.75. if p1 is purchased the plant facilities now used for its manufacture can be used to produce another product that will generate a quarterly contribution margin of $5,500. assuming that p1 is to be produced internally, what is the expected quarterly production?
a. 700
b. 1,000
c. 1,700
d. 2,000