Use the following to answer the questions below.
A company must decide on the type of equipment to buy in order to manufacture a new product line.The company can purchase an all-purpose machine,with fixed costs amounting to $20,000 per year,and it will cost $40 / unit to produce the new line on this machine.It can also buy a special-purpose machine,with fixed costs of $50,000 per year,and the per unit cost on this machine is $30.
-Refer to the instruction above.What is the break-even quantity between the two machines?
A)7,000 units
B)10,000 units
C)3,000 units
D)5,000 units

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The Answer of Use the following to answer the questions below.
A company must decide on the type of equipment to buy in order to manufacture a new product line.The company can purchase an all-purpose machine,with fixed costs amounting to $20,000 per year,and it will cost $40 / unit to produce the new line on this machine.It can also buy a special-purpose machine,with fixed costs of $50,000 per year,and the per unit cost on this machine is $30.
-Refer to the instruction above.What is the break-even quantity between the two machines?
A)7,000 units
B)10,000 units
C)3,000 units
D)5,000 units

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