Question $5-[20$ Points$]$

A company has two options for manufacturing drills. The manual process has monthly fixed costs of $$28,225$ and variable costs of $$3\mathrm{.}75$ per drill; and, a more automated process has fixed costs of $$77,000$ per month and variable costs of $$1\mathrm{.}45$ per unit. They expect to sell each drill for $$75.$

Round answers to two decimal places

$($a$)[7$ Points$]$ What is the monthly break$-$even quantity $($units$)$ for the manual process? $($round to a whole number$)$

ANSWER:

$($b$)[7$ Points$]$ At what monthly quantity would the total cost be the same for both processes? $($crossover point$)$ ANSWER: $q,$

$($c$)[6$ Points$]$ Which process is preferred if they expect to sell $800$ drills per month?

ANSWER: $q,$