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Two different manufacturing processes being considered for making a new

Question : Two different manufacturing processes being considered for making a new : 6604

Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only

$45,800 per year and variable costs of $665 per unit. The second process has fixed costs of $401,000 but variable costs of only $225 per unit.

a. What is the break-even quantity, beyond which the second process becomes more attractive than the first?

The volume at which the second process becomes more attractive is ___units. (Enter your response rounded to the nearest whole number.)

Solution
5 (1 Ratings )

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Mathematics 8 Months Ago 134 Views
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