Although it will fulfill her lifelong dream, Patricia is not confident that demand for her Tiny Trisha doll will exceed the breakeven point computed in Problem 6-5. If she chooses a less appealing site and does more of the work by hand, her initial investment cost can be reduced to $5000, but her per-unit cost of manufacture will rise to $15 per doll.
a. What is the breakeven point for this new process?
b. Compare this process to the process proposed in the previous problem. For what volume of demand should Patricia choose this process?