Question: please include an excel graph to display intersection of the...
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
If the expected annual sales for the product is
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).