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a$.$ What would the cost be for each option if the demand level is $20,000$ units per year? If it is $120,000$ units per year?

Calculate the total costs for each option if the demand level is $20,000$ units per year $($enter your responses as whole numbers$).$

Find the total costs for each option if the demand level is $120,000$ units per year $($enter your responses as whole numbers$).$

b$.$ In general, which option do you think would be better as volume levels increase? As they decrease?

A$.$ As volume levels increase, Option $1$ will be better, since the variable cost is lower. As volumes decrease, Option $2$ will be better, as the fixed cost is lower.

B$.$ As volume levels increase, Option $1$ will be better, since the fixed cost is lower. As volumes decrease, Option $1$ will be better, as the variable cost is lower.

C$.$ As volume levels increase, Option $2$ will be better, since the fixed cost is lower. As volumes decrease, Option $2$ will be better, as the variable cost is lower.

D$.$ As volume levels increase, Option $2$ will be better, since the variable cost is lower. As volumes decrease, Option $1$ will be better, as the fixed cost is lower.

c$.$ The indifference point is

units. $($Enter your response rounded to the nearest whole number.$)$

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