A Poultry Farmer Is Debating Whether to Acquire Rhode Island

Multiple Choice

A poultry farmer is debating whether to acquire Rhode Island Reds or Buff Orpingtons to lay the eggs he wants to sell. The fixed costs for the Buffs would be $7,500 and the variable costs per egg would be a dime per egg. The Reds would have a fixed cost of $6,000 and a variable cost of fifteen cents. At what level of egg production would the poultry farmer be indifferent between Rhode Island Reds and Buff Orpingtons?

A) 20,000 eggs
B) 30,000 eggs
C) 50,000 eggs
D) 60,000 eggs