A process can be completed using either Alternative X, or Y. Alternative X has a fixed cost of $10,000 per year with a variable cost $10 per unit. On the other hand, Alternative Y has a fixed cost of $5,000 per year with a variable cost $50 per unit. The minimum number of units that must be produced each year for Alternative X to be favored is closest to:
Alternative X will be favored for any level of production
Alternative Y will be favored for any level of production
125
375