7. 8.70 Process X has fixed costs of $40,000 per year and a variable cost of $60 per unit. Process Y has an unknown fixed cost, but with this process 200 units can be produced each month at a total variable cost of $2000. If the two processes break even at a production rate of 2000 units per year, the annual fixed cost of Y is closest to: 1. $60,000 2. $100,000 3. $120,000 4. $140,000