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Highgrove Industries Must Decide Which Process Technology to Adopt Given

Question 64

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Highgrove Industries must decide which process technology to adopt given the information below.  Cost  Technology A  Technology B  Technology C  Price per unit $3$3$3 Fixed costs per year $80,000$120,000$130,000 Variable costs per unit $2.20$1.85$1.65\begin{array}{|l|c|c|c|}\hline \text { Cost } & \text { Technology A } & \text { Technology B } & \text { Technology C } \\\hline \text { Price per unit } & \$ 3 & \$ 3 & \$ 3 \\\hline \text { Fixed costs per year } & \$ 80,000 & \$ 120,000 & \$ 130,000 \\\hline \text { Variable costs per unit } & \$ 2.20 & \$ 1.85 & \$ 1.65 \\\hline\end{array} Which one of the process technologies would you recommend they adopt based on breakeven analysis if they wish to minimize demand risks?

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Breakeven quantity for Technology A: 3X ...

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