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Business, 19.01.2021 19:00 Fahaddie

Arktec manufacturing must choose between the following two capacity options: Fixed cost (per year) Varriable cost (per year)
Option 1 $500,000 $ 2 per unit
Option 2 $100,000 $10 per unit
A. What would the cost be for each option if demand level is 25,000 units per year? If it is 75,000 units per year? SHOW WORK
B. In general, which option do you think would be better as volume levels increase? as they decrease? why? SHOW WORK
C. What is the indifference point? SHOW WORK

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