A process can be completed using either Alterative X or Y, where Y is an automated version
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Question:
A process can be completed using either Alterative X or Y, where Y is an automated version of X. Alternative X has fixed costs of $12.000 per year with a variable cost of $35 per unit. If the process is automated, the fixed cost for Y will be $8.000 per year and its variable cost will be only $30 per unit. The minimum number of units that must be produced each year for alterative Y to be favored is closest to:
(a). Alterative Y will be favored for any level of production
(b). 125
(c). 375
(d). Alternative X will be favored for any level of production
Related Book For
Marketing Research An Applied Orientation
ISBN: 978-0136085430
6th edition
Authors: Naresh K Malhotra
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