Question: May you please help me with this question? Im not sure how to go about it for the range of outputs and cross over point,
May you please help me with this question? Im not sure how to go about it for the range of outputs and cross over point, I know break point but not this question. Thank you in advance!
St. Martha's Producers Ltd. currently makes its lead product on a machine that has a variable cost of $32 per unit, and fixed costs of $74,000. St. Martha is considering purchasing a new machine that will drop the variable cost to $28 per unit, but has a fixed cost of $148,000. What is the cross-over point between the two machines? For what range of outputs is each process appropriate?
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