Question: Two different manufacturing processes are being considered for making a new product. The first process is less capital - intensive, with fixed costs of only
Two different manufacturing processes are being considered for making a new product. The first process is less
capitalintensive, with fixed costs of only $ per year and variable costs of $ per unit. The second process has
fixed costs of $ but variable costs of only $ per unit.
a What is the breakeven quantity, beyond which the second process becomes more attractive than the first?
The volume at which the second process becomes more attractive is units. Enter your response rounded to the
nearest whole number.
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