A process can be completed using either Alterative X or Y, where Y is an automated version of X. Alternative X has fixed costs of $12.000 per year with a variable cost of $35 per unit. If the process is automated, the fixed cost for Y will be $8.000 per year and its variable cost will be only $30 per unit. The minimum number of units that must be produced each year for alterative Y to be favored is closest to: 

(a). Alterative Y will be favored for any level of production 

(b). 125 

(c). 375 

(d). Alternative X will be favored for any level of production

Answer rating: 100% (QA)

SOLUTION ANSWER Correct option is A Alterative Y will ... View the full answer