Question: Two different manufacturing processes are being considered for making a new product. The first process is loss capital intenshe, with fixed costs of only 552.300
Two different manufacturing processes are being considered for making a new product. The first process is loss capital intenshe, with fixed costs of only 552.300 per year and variable costs of $650 per unit. The second process has fixed costs of $397,000 but variable costs of only $155 per unit. a. What is the break-even quantity, beyond which the second process becomes more aftractive than the firs?? The volume at which the second process becomes more attractive is units (Enter your response rounded to the nearest whole number). b. If the expected annual sales for the product is 830 units, which process would you choose? A. Since the production volume at which the second manufacturing process becomes more attractive is highe than the expected annual sales for the product. you should. choose the first manufacturing process. B. Since the production volume at which the socond manufacturing process becompos more attactive is highier than the expected annual sales for the praduct, you shoctd choose the second manufacturing process. C. Since the production volume at which the second manulacfuring process beconses more attractive is lonver than the expected annual sales for the product you ahould choose the first manufacturing process D. Since the production volurse at which the second manufacturing process becomes more attrhctlive is lower than the oxpected annual sales for the product. you should choose the second manufacturing process
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