Question: Suppose there are two options to replace a broken yet critical machine. One is to buy a new CNC machine that has a fixed cost

Suppose there are two options to replace a broken yet critical machine. One is to buy a new CNC machine that has a fixed cost of $400,000 and a variable cost of $4. The second option is to buy a used 5-axis milling machine in pretty good shape that costs only $40,000 but the variable costs are $10. What is the indifference point between the two options?
Question 10Select one:
a.
31,428.57 units
b.
None of these answers is even close
c.
73,333.33 units
d.
25,714.29 units
e.
60,000 units

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