question #5 please!!!

ause it was using significant memory. 4. A company needs to replace on old machine that is used to produce a primary product. The selling price of the product will be $219 per unit. Two different machines that could produce the product are being considered. Machine A would have an annual fixed cost of $9,500 and a variable cost per unit of $119. Machine B would have an annual fixed cost of $7,900 and a variable cost per unit of $128. a. Compute the annual break-even quantity for each machine. b. Based on annual cost, at what annual volume would the company be indifferent to purchasing Machine A or B? 5. Bundey's Mfg. is a small manufacturer that makes metal parts based on customers' engineering drawings. Some parts are one of a kind, but others are repeat orders from long-time customers for medium-sized quantities. For a new family of part types it has decided to start making, Bundey's management is considering the creation of a low-tech production line or a high-tech manufacturing cell. Because the family of parts is new for Bundey's, management is very uncertain about what annual production volumes to expect. The production approach it selects will partly depend on the economics of each approach: Low-Tech Prod. Line High-Tech Mfg. Cell Annual fixed cost $55,000 $87,000 Variable cost per part $62.5 $48.25 a. Which alternative is best? b. At what annual production volume would management be indifferent between the two approaches? c. For what range of annual production volumes would each approach be preferred? d. What other considerations should be important in the decision? Topic 4 - 28 ED & 7 S 6. 8 9