A company is considering two alternative technologies for manufacturing a product. The cost data are shown below.
$\begin{array}{lcc}
& \text { A } & \text { B } \
\text { Fixed Cost } & \$ 10,000 & \$ 25,000 \
\text { Variable Cost } & \$ 30 / \text { unit } & \$ 5 / \text { unit }
\end{array}$ What is the breakeven volume, and under what circumstances should A be chosen?

Question

A company is considering two alternative technologies for manufacturing a product. The cost data are shown below.
 $\begin{array}{lcc} 
& \text { A } & \text { B } \
\text { Fixed Cost } & \$ 10,000 & \$ 25,000 \
\text { Variable Cost } & \$ 30 / \text { unit } & \$ 5 / \text { unit }
\end{array}$ What is the breakeven volume, and under what circumstances should A be chosen?

Quizplus · Accepted Answer

The Answer of A company is considering two alternative technologies for manufacturing a product. The cost data are shown below.
 $\begin{array}{lcc} 
& \text { A } & \text { B } \
\text { Fixed Cost } & \$ 10,000 & \$ 25,000 \
\text { Variable Cost } & \$ 30 / \text { unit } & \$ 5 / \text { unit }
\end{array}$ What is the breakeven volume, and under what circumstances should A be chosen?

A Company Is Considering Two Alternative Technologies for Manufacturing a Product