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A Company Is Investigating Two Automated Approaches for Its Production

question 61

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A company is investigating two automated approaches for its production process. It has collected the following cost information about each:
 Alternative  Fixed Cost  Variable Cost  CNC $80,000$2.75 FMS $190,000$1.25\begin{array}{|l|c|c|}\hline \text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \\\hline \text { CNC } & \$ 80,000 & \$ 2.75 \\\hline \text { FMS } & \$ 190,000 & \$ 1.25 \\\hline\end{array}
-If the forecast annual production volume is 50,000 units, which technology alternative should the company choose?


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