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 does the company save for the year by selecting this low-cost option (for annual requirements of 5,000 units)?
A)$15,000
B)$5,000
C)$10,000
D)$20,000

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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 does the company save for the year by selecting this low-cost option (for annual requirements of 5,000 units)?
A)$15,000
B)$5,000
C)$10,000
D)$20,000

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