A Company Is Looking into Two Alternative Methods of Producing

question 74

Essay

A company is looking into two alternative methods of producing its product.The following information about the two alternatives is available:
$\begin{array}{lcc}&\text { Alternative \#1 }&\text { Alternative \#2 }\\ \text { Variable costs per unit } & \$ 8 & \$ 12 \\\text { Fixed costs } & \$ 240,000 & \$ 140,000 \\\text { Selling price per unit } & \$ 20 & \$ 20\end{array}$

If the company's expected sales volume is 35,000 units,which alternative should be selected?

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Definitions:

Trojan

A virus program that appears to be a normal application but that, when executed, changes something. It does not replicate but could gather information that could later be used to hack into someone’s computer.

Multifactor Authentication

A security system requiring more than one method of authentication from independent categories of credentials to verify the user's identity.

Password/PIN

Security measures used to protect access to devices and accounts, consisting of a secret series of characters (password) or numbers (PIN) known only to the user.

Smart Card

A small ID-size card that can store data, be encrypted, and swiped through and/or interact wirelessly with a smart card reader. Examples of smart cards are identification, medical, credit, and access card.