PS.51 Tech solutions have contracted with a cell phone manufacturer to create a special chip to allow people to make banking transactions on their cell phones. Tech Solutions has contracted to sell 601,400 units. The selling price for the chip is $65 per unit. They need to decide which production process is best suited for the chip. To help accomplish this, the firm has gathered the following production cost data:

Process	Fixed Costs	Labor/Unit	Material Cost/Unit
Eastern Foundry	$1,000,000	$18.48	$22.92
Western Foundry	$1,600,000	$16.87	$22.47
Old Fab	$3,400,000	$15.56	$20.78
New Fab	$6,454,200	$14.35	$20.78

Based on the given demand, price, and cost data, which process option is best?

		Western Foundry
		Eastern Foundry
		Old Fab
		New Fab

For the process option you selected in the previous question, what will be the gross profit? (Display your answer to the nearest whole number).

If demand were to increase, what would be the break-even point (in unit volume or demand) between the process option you selected above and the "New Fab" process option? (Display your answer to the nearest whole number).

For a volume that is 6 units greater than the break-even point (answered in the previous question), which process option would be best?

		Old Fab
		New Fab
		Eastern Foundry
		Western Foundry