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9. A company can manufacture a product with off-the-shelf hand tools. Fixed costs will be $1,000 for tools and $1.50 manufacturing costs per unit.
9. A company can manufacture a product with off-the-shelf hand tools. Fixed costs will be $1,000 for tools and $1.50 manufacturing costs per unit. As an alternative, an automated system will cost $15,000 with $0.50 manufacturing cost per unit. With an anticipated volume of 5,000 units, the break-even point in years is a) 2.0 yr. b) 2.8 yr. c) 3.6 yr. d) 10.0 yr.
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