Question: A product is currently made in a process focused shop, where fixed costs are $8,000 per year and variable cost is 540 per unit. The
A product is currently made in a process focused shop, where fixed costs are $8,000 per year and variable cost is 540 per unit. The firm currently iells 200 units of the peoduct at $700 per unit. A manager is considering o repebtive focus to lower costs (and lower prices, thus raining demand). The costs of this proposed thop are fised costr - 524,000 per rear and yarialle costs - \$10 per unit if a pince of $30 will allow 400 units to be sold, what profit (or loss) can this proposed new process expect? Do you anticipare that the manager will want to change the process? Explain
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