A company is looking into two alternative methods of producing its product. The following information about the two alternatives is available. If the company's expected sales volume is 35,000 units, which alternative should be selected? Prepare forecasted income statements and compute degree of operating leverage to assess the alternatives. 
Definitions:
Price-Fixing
An illegal agreement among competitors to set prices at a certain level, rather than allowing them to be determined naturally by market forces.
Cartels
An agreement among competing firms to control prices or exclude entry of a new competitor in the market, often illegal and against free market principles.
Antitrust Laws
Legislation enacted to prevent monopolies and encourage competition in the market, ensuring fair practices and protecting consumers.
Economies Of Scale
Cost advantages obtained due to the increased level of production, which causes the cost per unit of output to decrease.
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