Question

Kanga company is considering two different production plans. option one: fixed costs of $10,000 and a breakeven point of 500 units. option two: fixed costs of $20,000 and a breakeven point of 700 units. which option should kanga choose if it is expecting to produce 600 units? select one:
a. option one
b. option two
c. both options are equally good
d. it isn't possible to determine from the information given

Answer 1

I think option 2 
 because use have the extra 100 units and you need 600