Question: You are evaluating two capacity alternatives. You found a point of indifference of 5,000 units. Your planned quantity is 4,000 units which leads you to

You are evaluating two capacity alternatives. You

You are evaluating two capacity alternatives. You found a point of indifference of 5,000 units. Your planned quantity is 4,000 units which leads you to choose Capacity B over Capacity A. What can you say about the relative costs for the two alternatives? (Hint: sketching a diagram showing the total cost lines may help) A. Capacity B has lower variable cost B. Capacity A has lower variable cost C. Capacity B has lower total costs for all quantities D. Capacity A has higher total costs for all quantities

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