Kirstin Is Thinking About Opening an Italian Restaurant and Needs

Multiple Choice

Kirstin is thinking about opening an Italian restaurant and needs to buy a dough maker. Machine A has fixed costs of $300 and variable costs of $1/pound. Machine B has fixed costs of $1000 and variable costs of $0.30/pound. What is the crossover point? For 500 pounds of dough, which machine is better?

A) 1000; Machine A
B) 1000; Machine B
C) 538; Machine A
D) 538; Machine B
E) 1857; Machine A