2. Operations Management
3. please include an excel graph to display intersection of the...

# Question: please include an excel graph to display intersection of the...

###### Question details

please include an excel graph to display intersection of the break even point with said data

Two different manufacturing processes are being considered for making a new product. The first process is less​ capital-intensive, with fixed costs of only $48, 400 per year and variable costs of$ 715 per unit. The second process has fixed costs of $407, 000 but variable costs of only$ 195 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

690 units.

If the expected annual sales for the product is

810

​units, which process would you​ choose?

Verify your answer using spreadsheet software Conduct the breakeven analysis and draw a graph that displays the intersection of the total cost lines (breakeven point).