TechGadget Inc. is evaluating two potential locations for a new manufacturing facility to produce a popular electronics accessory. Here are the financial details for each location:

Sunnyvale Facility: Fixed costs would be $$5,000,000$ per year, and variable costs $$0\mathrm{.}40$ per unit.

Riverside Facility: Fixed costs would be $$4,500,000$ per year, with variable costs of $$0\mathrm{.}45$ per unit.

Given that the annual demand is expected to be $12$ million units, which facility offers the lowest total cost?

Riverside Facility, because it has the lower variable cost per unit.

Sunnyvale Facility, because it is cheaper than Riverside Facility for all volumes.

Riverside Facility, because it is cheaper than Sunnyvale Facility for all volumes over $10,000,000$ units.

Sunnyvale Facility, because it is cheaper than Riverside Facility for all volumes over $10,000,000$ units.