5. Spartan Castings 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 $350,000 of fixed cost and add $50 of vari- able cost to each casting Spartan produces. The second pro- cess has fixed costs of $150,000 and adds $90 of variable cost per casting. What is the break-even quantity beyond which the first process is more attractive? What is the difference in total cost if the quantity produced is 10,000? 6 Anews clipping service is considering modernization. Rather than manually clipping and photocopying articles of inter- est and mailing them to its clients, employees electronically input stories from most widely circulated publications into a database. Each new issue is searched for key words, such as a client's company name, competitors' names, type of business, and the company's products, services, and officers. When matches occur, affected clients are instantly notified via an online network. If the story is of interest, it is electroni- cally transmitted, so the client often has the story and can prepare comments for follow-up interviews before the pub- lication hits the street. The manual process has fixed costs of $400,000 per year and variable costs of $6.20 per clipping mailed. The price charged the client is $8.00 per clipping. The computerized process has fixed costs of $1,300,000 per year and variable costs of $2.25 per story electronically trans- mitted to the client. fa. If the same price is charged for either process, what is the annual volume beyond which the automated process is more attractive? b. The present volume of business is 225,000 clippings per year. Many of the clippings sent with the current process are not of interest to the client or are multiple copies of the same story appearing in several publications. The news clipping service believes that by improving service and by lowering the price to $4.00 per story, moderniza- tion will increase volume to 900,000 stories transmitted per year. Should the clipping service modernize? c. What other consid 8. Techno Corporation variable costs of $5 p- turing this itern are $ the item is $10 per u 30,000 units. C. If the forecasted increase in business is too optimistic, at what volume will the new process (with the $4.00 price). bronk ouon? a. Techno can subs installing new e of $60,000. Varia but, as more of the annual volu Techno buy the price of the ite b Alternatively, $11 per unit. be limited to equipment a why not? 9. The Tri-Count a nonprofit co service to rura demand forec distribution s than it needs service on in $82.5 million are $25 per m used for one forecasting year's budg customers a. How m per M b. The Tr electri mater nonp 10. Earthqu pestilen the City in dem system 150,00