Question: A company is considering two alternative technologies for manufacturing a product.The cost data are shown below: Technology A Technology B Fixed Cost $15,000 $35,000 Variable
A company is considering two alternative technologies for manufacturing a product.The cost data are shown below:
Technology A
Technology B
Fixed Cost
$15,000
$35,000
Variable Cost
$30/unit
$5/unit
If the forecast annual production volume is 500 units, which technology alternative should the firm choose?
Group of answer choices
Technology B
Technology A
It is indifference between the two processes.
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