An electronics firm is considering two different manufacturing processes to make a new product. The first process is less capital-intensive, with fixed costs of $200,000 per year and variable costs of $2,400 per unit. The second (more capital-intensive) process has fixed costs of $1,000,000 per year but has variable costs of $450 per unit. The firm expects to sell the product at $3,200 per unit.

a. What is the crossover quantity? Answer with a whole number.

b. What is the crossover cost? Answer with a whole number.

c. If the expected annual sales for the product is 1,000 units, which process would you choose?

	First process with fixed costs of $200,000
	Second process with fixed costs of $1,000,000
	They are indifferent between the processes because variable cost is less than price in both cases.
	We do not have enough information to make the decision.

d. If the firm must process 1,500 units per year, what value must the fixed costs for the more capital-intensive process be for the firm to be indifferent between the two processes? Answer with a whole number.

e. If the firm must process 1,500 units per year, what value must the variable costs for the less capital-intensive process be for the firm to be indifferent between the two processes? Answer with a whole number.