Question: SYM Electronics is preparing a production facility for its new product. The company evaluates three methods of production: A) a small production facility with old

SYM Electronics is preparing a production

SYM Electronics is preparing a production facility for its new product. The company evaluates three methods of production: A) a small production facility with old equipment, B) a large production facility that is more automated, and C) subcontracting to an electronic manufacturer in Malaysia. The costs of each alternative are shown below. Method A B Annual fixed cost ($) 200,000 500,000 0 Variable cost ($/item) 30 20 50 1) If the unit price for the product is set at $120, find the break-even points for all three methods. (12%) 2) Draw a graph that includes cost lines of all three methods and find the range of production quantity that each method becomes the best choice. (18%)

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