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Karla's candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $ 1 5 , 0 0 0

Karla's candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $15,000 and variable costs of $2.25/candle. Option B uses a combination of hand and automation with fixed costs of $20,000 and variable costs of $1.55/candle. Option C is highly automated with fixed costs of $25,000 and variable costs of $1.10/candle.
Based on comparing all three options, answer the following (Cross-Over Analysis)
a. If demand for Karla's candles is 8,500, which option should she pick?
[ Select ]
, and what is the cost?
[ Select ]
b. If demand for Karla's candles is 12,000, which option should she pick?
[ Select ]
, and what is the cost?
[ Select ]

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