Gabriella Mfg is considering insourcing or outsourcing a new carpet cleaner. The insource process would incur $300,000 of annual fixed costs and…

Gabriella Mfg is considering insourcing or outsourcing a new carpet cleaner. The insource process would incur $300,000 of annual fixed costs and variable costs would be $1.50. A new supplier would provide the cleaner for $1.80 per unit with an annual fixed costs of $200,000. Determine the indifference point for the two options.