Question 13 (2 points) A manufacturing firm is considering two options to use in the production of their new product. Alternative / is to buy a machine which is a bit costly, i.e., fixed cost (FC) is high, but the variable cost (VC - $/unit) is smaller and constant for all ranges of production. Alternative Il is to buy from an external supplier - the variable cost is high but there is no fixed cost. For each alternative, the annual fixed cost and the variable cost are given in the table below. The selling price is expected to be $50. Alternative Alternative II FC = $60,000 FC = 0 VC = $20/unit VC = $30/unit Calculate the break-even point for Alternative I: 1000 units 2000 units 3000 units 1500 units Question 14 (5 points) Refer to the information in Q13. Determine the production range where Alternative l is best. (6000, +00) (2000, +00) O o (0,6000) O (0, 3000) Question 13 (2 points) A manufacturing firm is considering two options to use in the production of their new product. Alternative / is to buy a machine which is a bit costly, i.e., fixed cost (FC) is high, but the variable cost (VC - $/unit) is smaller and constant for all ranges of production. Alternative Il is to buy from an external supplier - the variable cost is high but there is no fixed cost. For each alternative, the annual fixed cost and the variable cost are given in the table below. The selling price is expected to be $50. Alternative Alternative II FC = $60,000 FC = 0 VC = $20/unit VC = $30/unit Calculate the break-even point for Alternative I: 1000 units 2000 units 3000 units 1500 units Question 14 (5 points) Refer to the information in Q13. Determine the production range where Alternative l is best. (6000, +00) (2000, +00) O o (0,6000) O (0, 3000)