Use the Following to Answer the Questions Below

Multiple Choice

Use the following to answer the questions below.
You currently purchase a part used in your production process from an outside supplier,and have decided to begin making this part in-house.You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment.Cost information for these two options is as follows:

-Refer to the instruction above.What are total costs under the Special-Purpose Equipment option for an annual quantity of 40,000 units?

A) $400,000
B) $500,000
C) $800,000
D) $850,000