A firm must make a choice between a manual and a semi-automatic production process for a new product line. The following are the costs for each process: $\begin{array}{|l|c|c|}
\hline \text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \
\hline \text { Manual } & \$ 100,000 & \$ 75.00 \
\hline \text { Semi-Automatic } & \$ 300,000 & \$ 50.00 \
\hline
\end{array}$ The breakeven volume is _____.
A) less than or equal to 2000 units
B) more than 2000 but less than or equal to 4000 units
C) more than 4000 but less than or equal to 6000 units
D) more than 6000 but less than or equal to 8000 units

Question

Quizplus · Accepted Answer

The Answer of A firm must make a choice between a manual and a semi-automatic production process for a new product line. The following are the costs for each process: $\begin{array}{|l|c|c|}
\hline \text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \
\hline \text { Manual } & \$ 100,000 & \$ 75.00 \
\hline \text { Semi-Automatic } & \$ 300,000 & \$ 50.00 \
\hline
\end{array}$ The breakeven volume is _____.
A) less than or equal to 2000 units
B) more than 2000 but less than or equal to 4000 units
C) more than 4000 but less than or equal to 6000 units
D) more than 6000 but less than or equal to 8000 units

A Firm Must Make a Choice Between a Manual and a Semi-Automatic