Question: Andy Mendoza in Problem 7 is concerned that the demand for his dolls will not exceed the break - even point. He believes he can
Andy Mendoza in Problem is concerned that the demand for his dolls will not exceed the breakeven point. He believes he can reduce his initial investment by purchasing used sewing machines and fewer machines. This will reduce his initial investment from $ to $ However, it will also require his employees to work more slowly and perform more operations by hand, thus increasing variable cost from $ to $ per doll. Will these changes reduce his breakeven point?
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