Use the Following to Answer the Questions Below

Multiple Choice

Use the following to answer the questions below.
A company must decide on the type of equipment to buy in order to manufacture a new product line.The company can purchase an all-purpose machine,with fixed costs amounting to $20,000 per year,and it will cost $40 / unit to produce the new line on this machine.It can also buy a special-purpose machine,with fixed costs of $50,000 per year,and the per unit cost on this machine is $30.
-Refer to the instruction above.Which alternative should be selected if annual requirements are 5,000 units?

A) all-purpose machine
B) special-purpose machine
C) either machine;costs are the same for either option at 5,000 units
D) alternative to be selected;can't be determined with information given.