Question $1$

$10$ pts

PineApple estimates that it would cost them $$50,000$ to modify existing equipment to produce the next gen e$-$Phone. They also estimate that it would cost them $$250$ to make each unit of the new e$-$Phone.

Alternatively, PineApple is also considering the purchase of new equipment that would produce the phones more efficiently. With the new equipment, their fixed cost would be raised to $$70,000,$ but variable cost would be reduced to $$200$ per phone. What is the point at which PineApple would be indifferent between the $2$ processes: the process with the modified equipment, or the process with the new equipment?

$200$ units.

$400$ units.

$350$ units.

$250$ units.