A new product is being introduced that will sell for $18 per…
A new product is being introduced that will sell for $18 per unit. Two processes are being considered; Option 1 is more labor intensive and Option 2 is more automated. Costs associated with each option are as follows: Option 1 Option 2 Variable cost per unit $13 $10 Total fixed costs 2,400 6,000 a. Compute the number of units sold at the point where the operating income would be the same under either option (point of indifference). Show your calculations on your work paper and enter your answer below. Units sold b. Which option (1 or 2) offers the highest upside (profit) potential? Option c. Which option (1 or 2) poses the greatest downside (loss) risk? Option