Question: Two different manufacturing processes are being considered for making a new product. The first process is less capital - intensive, with fixed costs of only

Two different manufacturing processes are being considered for making a new product. The first process is less capital

-

intensive, with fixed costs of only $

54, 000

per year and variable costs of $

655

per unit. The second process has fixed costs of $

406, 000

but variable costs of only $

205

per unit.

Part

2

.

What is the break

-

even quantity, beyond which the second process becomes more attractive than the first?The volume at which the second process becomes more attractive is enter your response here units.

(

Enter your response rounded to the nearest whole number.

)

Part

3

.

If the expected annual sales for the product is

910

units, which process would you choose?

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