Question: Q7. Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with a fixed cost of only

Q7. Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with a fixed cost of only $50; 000 per year and a unit cost of $700 per unit. The second process has a fixed cost of $400;000 but has a unit cost of only $200 per unit. a. What is the break-even quantity, beyond which the second process becomes more attractive than the first? b. If the expected annual sales for the product is 800 units, which process would you choose? Q8. ABC company currently purchases a part used in the production process from an external supplier and has decided to begin making this part in-house. ABC has two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment. Cost information for these options is as follows: If the breakeven quantity between the two options is 30; 000 units per year, what is the unit cost of production with the general-purpose equipment

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