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 $45,100 per

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

$45,100

per year and variable costs of

$730

per unit. The second process has fixed costs of

$393,000

but variable costs of only

$235

per unit.

Part 2

a. 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

b. If the expected annual sales for the product is

805 units, which process would you choose?

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