6.10. NanoTech is ready to begin production of its exciting new tech- nology. The company is evaluating three methods of production: (A) a small production facility with older equipment, (B) a larger produc- tion facility that is more automated, and (C) subcontracting to an elec- tronics manufacturer in Singapore. The costs of each alternative are shown below. Determine for what level of demand each production process should be chosen. Process Fixed Cost Variable Cost A $200,000 $40 $600,000 $20 C 24 $60

Lazer Technologies Inc. (LTI) has produced a total of 20 high-power laser systems that could be used to destroy any approaching enemy missiles or aircraft. The 20 units have been produced, funded in part as private research within the research and development arm of LTI, but the bulk of the funding came from a contract with the U.S. Department of Defense (DoD).   Testing of the laser units has shown that they are effective defense weapons,  and if redesigned to add portability and easier field maintenance, the units could be truck-mounted.   The DoD has asked LTI to submit a bid for 100 more units.   The 20 units that LTI has built so far cost the following amounts and are listed in the order in which they were produced: Use Exhibit 6.4 and Exhibit 6.5.     UNITNUMBER COST($ MILLIONS) UNITNUMBER COST($ MILLIONS) 1   $ 13.0   11 $ 2.2   2     7.5   12   2.1   3     5.8   13   1.9   4     4.5   14   1.9   5     4.0   15   1.7   6     3.5   16   1.7   7     3.1   17   1.5…