A Company Is Considering Two Alternative Technologies for Manufacturing a Product

Multiple Choice

A company is considering two alternative technologies for manufacturing a product. The cost data are shown below. $\begin{array}{|l|c|c|}\hline & \text { A } & \text { B } \\\hline \text { Fixed Cost } & \$ 10,000 & \$ 25,000 \\\hline \text { Variable Cost } & \$ 30 / \text { unit } & \$ 5 / \text { unit } \\\hline\end{array}$ The breakeven volume is _____.

A) less than or equal to 200 units
B) more than 200 but less than or equal to 300 units
C) more than 300 but less than or equal to 400 units
D) more than 400 units