Question: $ 4 , 0 0 0 , 0 0 0 per year, and variable costs $ 0 . 3 0 per unit. At alternative B

$4,000,000 per year, and variable costs $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.34 per unit. If annual demand is expected to be 9 million units, which plant offers the lowest total cost?
A) Plant A, because it is cheaper than Plant B for all volumes below 10,000,000 units.
B) Plant B, because it is cheaper than Plant A for all volumes below 10,000,000 units.
C) Plant A, because it is cheaper than Plant B for all volumes.
D) Plant B, because it has the lower variable cost per unit.
E) Neither Plant A nor Plant B, because the crossover point is at 9 million units.

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