What is the break-even quantity beyond

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Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $320,000 of fixed cost and add $70 of variable costs to each casting Spartan produces. The second has fixed costs of $200,000 and adds $90 of variable cost per casting.

a. What is the break-even quantity beyond which the first process is more attractive? The break-even quantity is ___ castings (enter your response as an integer)

Reference no: EM13842764

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