Question: Kyle wants to implement a new production process in order to reduce his use of key raw material and thus reduce his product cost. Kyle
Kyle wants to implement a new production process in order to reduce his use of key raw material and thus reduce his product cost. Kyle has found two processes that provide the same level of reduction. The first process is expected to incur $ of fixed cost and add $ of variable cost to each unit produced. The second process has fixed costs of $ and adds $ of variable cost per unit.
a What is the breakeven quantity?
units. Enter your response as an integer.
b What is the difference in total cost if the quantity produced is
The total cost of is greater. The difference in total cost is Enter your response as an integer.
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