Question: Wo different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only $46,700 per

Wo different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only $46,700 per year and variable costs of $670 per unit. The second process has ixed costs of $407,000 but variable costs of only $215 per unit. 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 units. (Enter your response rounded to the nearest whole number.) . If the expected annual sales for the product is 920 units, which process would you choose? A. Since the production volume at which the second manufacturing process becomes more attractive is lower than the expected annual sales for the product, you should choose the second manufacturing process. B. Since the production volume at which the second manufacturing process becomes more attractive is higher than the expected annual sales for the product, you should choose the second manufacturing process. C. Since the production volume at which the second manufacturing process becomes more attractive is lower than the expected annual sales for the product, you should choose the first manufacturing process. D. Since the production volume at which the second manufacturing process becomes more attractive is higher than the expected annual sales for the product, you should choose the first manufacturing process
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
