Question: 57 b) | What is Break Even Model? A firm has two equipment alternatives it can choose from in producing a new product. One automated

57 b) | What is Break Even Model? A firm has two

57 b) | What is Break Even Model? A firm has two equipment alternatives it can choose from in producing a new product. One automated piece of equipment costs $200,000 and produces items at a cost of $4 per unit. Another semi-automated piece of equipment costs $125,000 and produces items at a cost of $5.25 per unit. i. What volume of output makes the two pieces of equipment equally costly? ii. If 18,000 units are to be produced, which piece of equipment is less costly? What is the value of minimum cost? RUBRIC (Scoring guide) Developing Expressions Calculation Steps Final Answer 20% 20% 40% 20%

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