Question: PROBLEM FOUR capacity A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual Fixed Cost of $100,000 and

PROBLEM FOUR capacity A firm is considering three

PROBLEM FOUR capacity A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual Fixed Cost of $100,000 and Variable Costs of $22 per unit. Alternative B would have an annual Fixed Cost of $120,000 and Variable Costs of $20 per unit. Alternative C would have an annual Fixed Cost of $80,000 and Variable Costs of $30 per unit. Revenue is expected to be $50 per unit. Which alternative has the lowest Break-Even Quantity ? Which alternative will produce the highest profit at an annual output of 10,000 units

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