Final answer:
To determine the breakeven quantity, compare the average cost of production with the selling price for each option. The breakeven quantities are: Option a: 30,000 units, Option b: 1,750 units, Option c: 4,000 units, Option d: 4,500 units.
Step-by-step explanation:
To determine the breakeven quantity between the two alternatives, we need to compare the average cost of production of each option with the price at which the company can sell its products. From the given information, we know that plant S has an average cost of production of $30 per unit, plant M has an average cost of production of $20 per unit, and plants L and V have an average cost of production of $10 per unit. To find the breakeven quantity, we need to find the point where the average cost equals the price. For example, if the price of the product is $30, then the breakeven quantity for plant S would be 1 unit (30/30 = 1). We can apply the same calculation to find the breakeven quantity for the other options: Option a: 30,000 units (30,000/30 = 1,000); Option b: 1,750 units (35,000/20 = 1,750); Option c: 4,000 units (40,000/10 = 4,000); Option d: 4,500 units (45,000/10 = 4,500).