lternative $1-$ Use the current technology with annual fixed costs of $$15,000$ and variable costs of $$11$ per ton.

Alternative $2-$ Adopt the latest technology resulting in annual fixed costs of $$45,000$ and variable costs of $$7$ per ton.

Alternative $3-$ Update the current technology resulting in annual fixed costs of $$25,000$ and variable costs of $$9$ per ton.

$21.$ The two relevant cross$-$over volumes $($those volumes at which you would shift from one process to another$).$

a$.7,500$ & $10,000$

b$.5,000$ & $10,000$

c$.8,500$ & $10,000$

d$.5,000$ & $7,500$

$5$ points $$

Question $22$

Which alternative would you recommend?

a$.$ Alternative $1$

b$.$ Alternative $2$

c$.$ Alternative $3$

d$.$ Any of the above