ter 07 Homework: Process Selection, Design, and Improvement Search this course Assignment: Chapter 07 Homework: Process Selection, Design, and Improvement Assignment Score: 4.16 Save Submit Assignment for Grading Questions Problem 7-40 Algo (Process Choice Decisions) 1. Ouestion 2 of 3 Hint(s) Check My Work Spreadsheet Samoset Fans, Inc, manufacturers its fan blades in-house. The owner, Betty Dice, doesn't outsource any fan parts except fan motors - all other fans parts are made in-house. Their current process and its equipment are getting old. Maintenance and repair costs are increasing at twelve percent per year. She and her company team are evaluating two new processes. The first process has an annual fixed cost of $720,000 and a variable cost of $17 per fan blade. The second process is more automated and requires an annual fixed cost of $1,200,000 and a variable cost of $13 per fan blade. The internal transfer cost of a fan blade is $23, and this helps the firm determine the total manufactured cost of a completed fan. Use the Excel template Break-Even in MindTap to answer the following questions: a. What is the break-even quantity between these two processes? Round your answer to the nearest whole number fan blades b. 17 predicted demand for next year is 170,000 blades, what process do you recommend? Round your answers to the nearest dollar Total cost of Process A: $ 3900000 Total cost of Process B: $ 4180000 So, Process is recommended What is the cost savings? Round your answer to the nearest dollar, 300000 $ 280000 c. What volume of demand does Samoset Fans, Inc need to make an internal profit on fan blades of $160,000, assuming they installed the process you recommend in part (b)? Round your answer to the nearest whole number, 10000 fan blades