NanoTech is ready to begin production of its exciting new technology. The company is evaluating three methods of production: (A) a small production facility with older equipment, (B) a larger production facility that is more automated, and (C) subcontracting to an electronics manufacturer in Singapore. Process A has a fixed cost of $200,000 and a variable cost of $40 per unit. Process B has a fixed cost of $600,000 and a variable cost of $20 per unit. Process C has no fixed cost since the item is purchased. It’s variable cost is the purchase price of $60 per unit. For
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