A company is considering two alternatives for automating a certain process. Alternative A will have fixed costs of $42,000 per year and will require 2 laborers at $48 per day each. Together, these laborers can generate 100 units of product. Alternative B will have fixed costs of $56,000 per year, but with this alternative, the 3 laborers will generate 200 units of product. In determining the breakeven number of units Q, the total cost per year for Alternative B is represented as:a. [2(48)/100]Qb. [3(48)/200]Qc. [3(48)/200]Q + 56,000d. [2(48)/100]Q + 42,000

A company is considering two alternatives for automating a certain process. Alternative A will have fixed costs of $42,000 per year and will require 2 laborers at $48 per day each. Together, these laborers can generate 100 units of product. Alternative B will have fixed costs of $56,000 per year, but with this alternative, the 3 laborers will generate 200 units of product. In determining the breakeven number of units Q, the total cost per year for Alternative B is represented as:a. [2(48)/100]Qb. [3(48)/200]Qc. [3(48)/200]Q + 56,000d. [2(48)/100]Q + 42,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 1.1CE

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