Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 58

An assembly process can be completed using either alternative X or Y. Alternative X has fixed costs of $10,000 per year with a variable cost of $50 per unit. If the process is automated per alternative Y, its fixed cost will be $5000 per year and its variable cost will be only $10 per unit. The number of units that must be produced each year in order for alternative Y to be favored is closest to:
A) Y will be favored for any level of production
B) 125
C) 375
D) X will be favored for any level of production