Ty worth Inc. is examining three alternative technologies with the fixed and variable costs given in Table 4.6. Plot the cost lines for these technologies and determine break-even quantities.

a. What is the lowest-cost technology if 10,000 units will be produced per year? What will the cost of production be for this quantity?
b. What is the lowest-cost technology if 20,000 units will be produced per year? What will the cost of production be for this quantity?
c. What is the lowest-cost technology if 50,000 units will be produced per year? What will the cost of production be for this quantity?

TABLE 4.6 Fixed Cost Variable Cost Technology (annual) $2,000 $8,000 $2 per unit $1.50 per unit $1.30 per unit $16,000