A Company Is Considering Two Alternative Technologies for Manufacturing a Product

Essay

A company is considering two alternative technologies for manufacturing a product. The cost data are shown below.
$\begin{array}{lcc} & \text { A } & \text { B } \\\text { Fixed Cost } & \$ 10,000 & \$ 25,000 \\\text { Variable Cost } & \$ 30 / \text { unit } & \$ 5 / \text { unit }\end{array}$ What is the breakeven volume, and under what circumstances should A be chosen?