A company is looking into two alternative methods of producing its product.The following information about the two alternatives is available:
$\begin{array}{lcc}
&\text { Alternative \#1 }&\text { Alternative \#2 }\
\text { Variable costs per unit } & \$ 8 & \$ 12 \
\text { Fixed costs } & \$ 240,000 & \$ 140,000 \
\text { Selling price per unit } & \$ 20 & \$ 20
\end{array}$

If the company's expected sales volume is 35,000 units,which alternative should be selected?

Question

A company is looking into two alternative methods of producing its product.The following information about the two alternatives is available:
 $\begin{array}{lcc}
&\text { Alternative \#1 }&\text { Alternative \#2 }\ 
\text { Variable costs per unit } & \$ 8 & \$ 12 \
\text { Fixed costs } & \$ 240,000 & \$ 140,000 \
\text { Selling price per unit } & \$ 20 & \$ 20
\end{array}$
  
If the company's expected sales volume is 35,000 units,which alternative should be selected?

Quizplus · Accepted Answer

The Answer of A company is looking into two alternative methods of producing its product.The following information about the two alternatives is available:
 $\begin{array}{lcc}
&\text { Alternative \#1 }&\text { Alternative \#2 }\ 
\text { Variable costs per unit } & \$ 8 & \$ 12 \
\text { Fixed costs } & \$ 240,000 & \$ 140,000 \
\text { Selling price per unit } & \$ 20 & \$ 20
\end{array}$
  
If the company's expected sales volume is 35,000 units,which alternative should be selected?

A Company Is Looking into Two Alternative Methods of Producing