What is the break-even quantity

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Reference no: EM131894890

Question: Two different manufacturing processes are being considered for making a new product. The first process is less? capital-intensive, with fixed costs of only $47,800 per year and variable costs of $ 715 per unit. The second process has fixed costs of $409,000 but variable costs of only $ 205 per unit.

a. 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 nothing units. ?(Enter your response rounded to the nearest whole? number.)

b. If the the expected annual sales for the product of 800 units, which process you choose?

Reference no: EM131894890

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