Two production methods are being considered for making thermal dryers. Method 1 has a fixed cost of

Question:

Two production methods are being considered for making thermal dryers. Method 1 has a fixed cost of $$1,000$ and a variable cost of $$20$ per unit. Method 2 has a fixed cost of $$400$ and a variable cost of $$100$ per unit. For what range of production volumes would you prefer each method?

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