The XYZ Company is considering two alternative methods of producing washing powder. Under the method A...

 

Transcribed Image Text:

The XYZ Company is considering two alternative methods of producing washing powder. Under the method A the fixed cost would be $40,000 and the variable cost per unit $6.60, while under the method B the fixed cost would be $50,000 and the variable cost per unit $6.20. For what production volume, the two methods are equivalent in terms of costs? The XYZ Company is considering two alternative methods of producing washing powder. Under the method A the fixed cost would be $40,000 and the variable cost per unit $6.60, while under the method B the fixed cost would be $50,000 and the variable cost per unit $6.20. For what production volume, the two methods are equivalent in terms of costs?

Answer rating: 100% (QA)

To find the production volume at which the two methods are equivalent in terms of cos... View the full answer