Question: An organization is looking at 2 options for a new piece of equipment to manufacturer a product they sell. Option A has an annual operating

An organization is looking at 2 options for a new piece of equipment to manufacturer a product they sell. Option A has an annual operating cost of $72,000 and produces the units at a cost of $14.00 each. Option B has a lower annual operating cost of only $58,000, but costs $22.00 to produce each unit.

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