ABC Manufacturing is producing custom packaging boxes and needs new equipment for production. Two suppliers are available:

Fixed Cost $($annual$)$

Variable Cost per box

Supplier X

$$100,000$

$$50$

Supplier Y

$$120,000$

$$30$

Attempt:

$1$ attempt

Grading

Maxin

For what range of demand volume will each supplier be more cost$-$effective?

Supplier Y is cheaper for demand below $1,000$ units

$)$ Supplier X is cheaper for demand below $1,000$ units

Supplier Y is cheaper for demand above $1,000$ units

Supplier X is cheaper for demand above $1,000$ units