Question: A product may be made using Machine I or Machine II . The manufacturer estimates that the monthly fixed costs of using Machine I are

A product may be made using Machine I or Machine II. The manufacturer estimates that the monthly fixed costs of using Machine I are $20,000, whereas the monthly fixed costs of using Machine II are $16,000. The variable costs of manufacturing 1 unit of the product using Machine I and Machine II are $12 and $21, respectively. The product sells for $60 each.

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