2-17 A labor-intensive process has a fixed cost of $338.000 and a variable cost of $143 per...
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2-17 A labor-intensive process has a fixed cost of $338.000 and a variable cost of $143 per unit. A capital- intensive (automated) process for the same product has a fixed cost of $1.244,000 and a variable cost of $92.50 per unit. How many units must be produced and sold at $197 each for the automated process to be preferred to the labor-intensive process.
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Engineering Economic Analysis
ISBN: 9780357419687
11th Edition
Authors: Donald Newnan, Ted Eschenbach, Jerome Lavelle
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