Topic 7 Chapter 7 Manufacturing Processes Use the following information for Questions 26-27 A news clipping service is considering modernization. The company is currently using a manual process that has fixed costs of $400,000 per year and variable costs of $6.20 per item. The company is considering converting to a computerized process that has fixed costs of $1,300,000 per year and variable costs of $2.25 per item. 26. (5 points) If the same price is charged for either process, what is the annual volume beyond which the computerized process is more attractive? A. Use the manual for 227,848 and less, computerized for 227,849 and more B. Use the manual for 150,820 and less, computerized for 150,820 and more C. Use the manual for 227,848 and more, computerized for 227,849 and less D. Use the manual for 150,820 and more, computerized for 150,820 and less 27. (5 points) Suppose that the company believes that it can earn an extra $2 per item in revenue for the computerized process compare to the manual process. What is the annual volume beyond which the computerized process is more attractive? A. Use the manual for 227,848 and less, computerized for 227,849 and more B. Use the manual for 151,260 and less, computerized for 151,261 and more C. Use the manual for 227,848 and more, computerized for 227,849 and less D. Use the manual for 151,260 and more, computerized for 151,260 and less