4. Two production methods are being considered for making thermal dryers. Method 1 has a fi xed...

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4. Two production methods are being considered for making thermal dryers.

Method 1 has a fi xed cost of $1,000 and a variable cost of $20 per unit.

Method 2 has a fi xed 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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Fundamentals Of Engineering Economic Analysis

ISBN: 9781118414705

1st Edition

Authors: John A. White, Kellie S. Grasman, Kenneth E. Case, Kim LaScola Needy, David B. Pratt

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