Question: Question content area Part 1 Two different manufacturing processes are being considered for making a new product. The first process is less capital - intensive,
Question content area
Part
Two different manufacturing processes are being considered for making a new product. The first process is less capitalintensive, with fixed costs of only
$ comma $
per year and variable costs of
$ $
per unit. The second process has fixed costs of
$ comma $
but variable costs of only
$ $
per unit.
Part
a What is the breakeven quantity, beyond which the second process becomes more attractive than the first?
The volume at which the second process becomes more attractive is
enter your response here
units. Enter your response rounded to the nearest whole number.
Part
b If the expected annual sales for the product is
units which process would you choose?
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