this is one question with multiple parts
Crossover Analysis An electronics rm is considering two different manufacturing processes to make a new product. The rst process is less capital-intensive, with xed costs of $200,000 per year and variable costs of $2,400 per unit. The second (more capital-intensive) process has xed costs of $1,000,000 per year but has variable costs of $450 per unit. The rm expects to sell the product at $3,200 per unit. Question 34 (1 point) What is the crossover quantity? Answer with a whole number. Your Answer: Your Answer Question 35 (1 point) What is the crossover cost? Answer with a whole number. Your Answer: Your Answer Question 36 (1 point) If the expected annual sales for the product is 1,000 units, which process would you choose? 0 First process with fixed costs of $200,000 O Second process with fixed costs of $1,000,000 O They are indifferent between the processes because variable cost is less than price in both cases. 0 We do not have enough information to make the decision. Question 37 (1 point) If the rm must process 1,500 units per year, what value must the xed costs for the more capital-intensive process be for the rm to be indifferent between the two processes? Answer with a whole number. Your Answer: Question 38 (1 point) If the rm must process 1,500 units per year, what value must the variable costs for the less capital-intensive process be for the rm to be indifferent between the two processes? Answer with a whole number. Your Answer: Your Answer Question 39 (1 point) What is the break-even quantity for the less capital-intensive process? Answer with a whole number. Your Answer: Your Answer Question 40 (1 point) What is the break-even quantity for the more capital-intensive process? Answer with a whole number. Your Answer: Your Answer Question 41 (1 point) For the more capital-intensive process, if the rm must process 1,500 units per year, how high must the variable costs be for the rm to break-even?? Answer to two decimal places. Your Answer: Your Answer Question 42 (1 point) Now suppose that the rm is considering a third option - outsourcing the product at a cost of $2,900 per unit. Identify the approximate range over which outsourcing provides the lowest cost. What is the bottom of the range that it is the lowest cost? Your Answer: Question 43 (1 point) Now suppose that the firm is considering a third option - outsourcing the product at a cost of $2,900 per unit. Identify the approximate range over which outsourcing provides the lowest cost. What is the top of the range that it is the lowest cost? Answer with a whole number. If it is unbounded (i.e. there is not a top of the range) enter the number 2000000. Your Answer: Your Answer Question 44 (1 point) If the firm anticipates producing 1,000 units per year, it should outsource. True False
