The Harry Badirchi Co. must implement a manufacturing process which reduces the amount of particulaes emitted into the atmosphere. Two processes have been identified that provide the same level of reductions. The first process is expected to incur about $400,000 of fixed cost and add $60 of variable cost to each unit. The second process has fixed costs of $175,000 and adds $100 to the variable cost of each unit.
A. What is the break-even quantity beyond with the first process is more attractive?
B. What is the difference in total cost if the quantity produced is 12,000 units?