Question: A specified part can be obtained by either two methods. Method A will have a fixed cost of $110,000 per year and variable cost of
A specified part can be obtained by either two methods. Method A will have a fixed cost of $110,000 per year and variable cost of $25 per unit. Method B will have fixed cost of $200,000 per year and variable cost of $15 per unit. The number of units that must be produced each year for the two methods to be equally attractive is:
Question 7 options:
6,000 units
8,000 units
9,000 units
7,750 units
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