Question: ALTERNATIVE FIXED COST VARIABLE COST Special-Purpose Equipment $200,000 per year $15 per unit General-Purpose Equipment $50,000 per year $20 per unit 14. What is the

ALTERNATIVE FIXED COST VARIABLE COST Special-Purpose Equipment $200,000 per year $15 per unit General-Purpose Equipment $50,000 per year $20 per unit

14. What is the break even quantity between the two options? a. 30,000 units per year b. 40,000 units per year c. 50,000 units per year d. 60,000 units per year

What are the total costs under the Special-Purpose Equipment option for an annual quantity of 40,000 units? a. $400,000 b. $500,000 c. $800,000 d. $850,000

What are the total costs under the General-Purpose Equipment option for an annual quantity of 40,000 units? a. $400,000 b. $450,000 c. $800,000 d. $850,000

For what range of output is the General-Purpose equipment the low-cost option? a. more than 40,000 units per year b. more than 30,000 units per year c. 0 - 30,000 units per year d. 0 - 40,000 units per year

For what range of output is the Special-Purpose Equipment the low-cost option? a. more than 30,000 units per year b. 0 - 30,000 units per year c. 0 - 40,000 units per year d. more than 40,000 units per year

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