Two different manufacturing processes are being considered


Two different manufacturing processes are being considered for making a new product. The first process is less? capital-intensive, with fixed costs of only $48,400 per year and variable costs of $ 730 per unit. The second process has fixed costs of $399,000 but variable costs of only $ 230 per unit.

a. What is the? break-even quantity, beyond which the second process becomes more attractive than the? first? The volume at which the second process becomes more attractive is ____ units. ?(Enter your response rounded to the nearest whole? number.) b. If the the expected annual sales for the product of 800 units, which process you choose?

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Operation Management: Two different manufacturing processes are being considered
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