7.1 Worthington Machining must decide whether to purchase Process A with specialized metal folding equipment needing two employees to operate it or Process B with general purpose folding equipment requiring five employees. Process A requires a fixed cost of $1,430,000 and a variable cost of $14.32 per metal panel. Process B requires a fixed cost of $820,000 and a variable cost of $20.05. Process A is more automated than Process B. a. What is the break-even quantity between these two processes? b. If predicted demand for next year is 120,000 panel folds, what process do you recommend? What is the cost savings? a. What is the break-even quantity between these two processes? Total cost A=$1,430,000+$14.32x Total cost B=$820,000+$20.05x $1,430,000+$14.32x=$820,000+$20.05x Break even quantity =$106,457.24 b. If predicted demand for next year is 120,000 panel folds, what process do you recommend? What is cost savings? Process A Saving $77,600 7.1 Given the information in problem 34, what do you recommend if Worthington Machining can buy folded metal panels of identical size at a price of $27.25 per panel