A car component can be produced by either of two manufacturing methods, method A or method...
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A car component can be produced by either of two manufacturing methods, method A or method B. For method A the fixed costs are 40000 per year and the variable costs are 23 per component. For method B the fixed costs are 52000 per year and the variable costs are 18 per component. Calculate the break-even quantity per year, for which the cost of manufacture is the same whichever method is used. Give your answer as an exact value. Break-even quantity: A car component can be produced by either of two manufacturing methods, method A or method B. For method A the fixed costs are 40000 per year and the variable costs are 23 per component. For method B the fixed costs are 52000 per year and the variable costs are 18 per component. Calculate the break-even quantity per year, for which the cost of manufacture is the same whichever method is used. Give your answer as an exact value. Break-even quantity:
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Answer rating: 100% (QA)
To calculate the breakeven quantity per year we need to find the point at which the total cos... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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