A Company Is Investigating Two Automated Approaches for Its Production

Multiple Choice

A company is investigating two automated approaches for its production process. It has collected the following cost information about each:
$\begin{array}{|l|c|c|}\hline \text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \\\hline \text { CNC } & \$ 80,000 & \$ 2.75 \\\hline \text { FMS } & \$ 190,000 & \$ 1.25 \\\hline\end{array}$
-The breakeven volume is _____.

A) less than or equal to 20,000 units
B) more than 20,000 but less than or equal to 40,00 units
C) more than 40,000 but less than or equal to 60,000 units
D) more than 60,000 but less than or equal to 80,000 units