Question: A product is currently made in a process - focused shop, where fixed costs are $ 9 , 0 0 0 per year and variable

A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable costs are $50 per unit. The firm is considering a fundamental shift in process, to repetitive manufacturing. The new process would have fixed costs of $90,000, and variable costs of $5.

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