Question : Two different manufacturing processes being considered for making a new
Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only
$45,800 per year and variable costs of $665 per unit. The second process has fixed costs of $401,000 but variable costs of only $225 per unit.
a. What is the break-even quantity, beyond which the second process becomes more attractive than the first?
The volume at which the second process becomes more attractive is ___units. (Enter your response rounded to the nearest whole number.)