Question: 1. (10 marks) Using existing technology, a vaccine costs $25 per vaccination. How- ever, two new competing technologies would lower the per-unit cost, but each

1. (10 marks) Using existing technology, a vaccine costs $25 per

1. (10 marks) Using existing technology, a vaccine costs $25 per vaccination. How- ever, two new competing technologies would lower the per-unit cost, but each tech- nology incurs a one-time cost of development. (1) Procedure 1 would have an upfront cost of $35,000, and there would be a vari- able cost of $10 per vaccination. (2) Procedure 2 would have an upfront cost of $90,000, and there would be a vari- able cost of $5 per vaccination. (a) What is the break-even point (BEP) for Procedure 1? (b) What is the BEP for Procedure 2? (c) At 10,000 vaccinations, what is the total cost for (i) Procedure 1 (ii) Procedure 2? (d) At 20,000 vaccinations, what is the average cost per vaccination for (i) Proce- dure 1 (ii) Procedure 2? (e) At what number of vaccinations would both technologies cost the same

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