1. An engineer must analyze two quotes and suggest one of them to the managers. The information is as follow: a. Machine A: Fixed cost is $100K, variable cost is $20 per unit, b. Machine B: Fixed cost is $150K, variable cost is $10 per unit, The price for the final product is $50 and the demand is 20000 parts. Which machine do you select for this order?

A. Machine A because the fixed cost is low

B. Machine B because the Fixed cost is higher.

C. Machine A because the order quantity is less than the "point of indifference"

D. Machine B because the order quantity is bigger than the "point of indifference"

2. An engineer must analyze two quotes and suggest one of them to the managers. The information is as follow: a. Machine A: Fixed cost is $100K, variable cost is $20 per unit, b. Machine B: Fixed cost is $150K, variable cost is $10 per unit, The price for the final product is $50 and the demand (customer order) is 2000 parts. Do you accept the customer order?

A. Yes, it is acceptable because the variable cost is low

B. No, it is not beneficial because the Fixed cost is high.

C. No because the order quantity is less than Break-even point

D. Yes, it is beneficial to accept all customer orders.