Reference no: EM132828646
QUESTION: Using existing technology, a vaccine costs $25 per vaccination. However, two new competing technologies would lower the per-unit cost, but each technology incurs a one-time cost of development.
(1) Procedure 1 would have an upfront cost of $35,000, and there would be a variable cost of $10 per vaccination.
(2) Procedure 2 would have an upfront cost of $90,000, and there would be a variable cost of $5 per vaccination.
(a) What is the break-even point (BEP) for Procedure 1?
(b) What is the BEP for Procedure 2?
(c) At 10,000 vaccinations, what is the total cost for (i) Procedure 1 (ii) Procedure 2?
(d) At 20,000 vaccinations, what is the average cost per vaccination for (i) Procedure 1 (ii) Procedure 2?
(e) At what number of vaccinations would both technologies cost the sam