Hi, this question is answered but I still don't understand it.

You are comparing replacing the current lab which has a cost function of C=200,000 + 25 x Q with an automated lab that has a cost function of C = 300,000 + 20 x Q. Doing so would reduce the error rate from 1.5% to 1%. Your volume is expected to be 18,000 tests per year. Should you choose the automated lab? Briefly explain your logic.