Question: Annual fixed cost Variable cost / unit Traditional manual process $ 5 5 , 0 0 0 $ 0 . 4 5 Automated process 1

Annual fixed cost Variable cost/ unit Traditional manual process $ 55,000 $ 0.45 Automated process 150,0000.15 Annual Volume (units)250,000 Sushi King sells sushi at $2.05 per unit. Compute (a) the indifference (crossover) point for these two processes, identify the least cost process for the volume of production expected by the company and compute the Breakeven Point for that least cost process. The breakeven point is Assume that the fixed cost for the entire company is equal to the fixed cost for the minimum cost process that your calculations have identified.

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