A rotational molding operation has fixed costs of $9,000 per year and variable costs of $53 per unit. If the process is automated via conveyor, its fixed cost will be $39,000 per year, but its variable cost will be only $10 per unit. Determine the number of units each yea necessary for the two operations to break even. The number of units each year necessary for the two operations to break even is determined to be

A rotational molding operation has fixed costs of $9,000 per year and variable costs of $53 per unit. If the process is automated via conveyor, its fixed cost will be $39,000 per year, but its variable cost will be only $10 per unit. Determine the number of units each yea necessary for the two operations to break even. The number of units each year necessary for the two operations to break even is determined to be

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 8MC

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