Which Lathe did She Go$?$

An operations manager is considering two different machine to

replace the manual lathe that is currently in used in a custom

furniture shop that utilizes recently felled ash trees.

Machine A can be bought for $$2,500,$ and has variable costs of $$2.$

Machine B has fixed costs of $$5,000,$ but costs only $$1$ per unit.

She has assessed the outlook for her business, and has determined

that, in a good market, demand will be $5,000$ units. A bad market, on

the other hand, will only generate orders for $1,000$ units.

Which alternative should be chosen to minimize costs?