Question
1) Buckeye Fan, Inc. must implement a manufacturing process that reduces the number of defects. Two processes have been identified that provide the same level
1) Buckeye Fan, Inc. must implement a manufacturing process that reduces the number of defects. Two processes have been identified that provide the same level of reduction. The first process is expected to incur $350,000 of fixed cost and add $50 of variable cost. The second process has fixed costs of $150,000 and adds $92 of variable cost. What is the difference in total cost if the quantity produced is 10,000? $____________(Enter your response rounded to the nearest whole number.)
2) Holly's Soap Company must implement a manufacturing process that reduces the amount of plastic used to produce its packaging. Two processes have been identified that provide the same level of plastic reduction. The first process is expected to incur $190,000 of fixed cost and add $65 of variable cost to each soap produced. The second process has fixed costs of $100,000 and adds $100 of variable cost per soap. What is the break-even quantity beyond which the first process is more attractive? _______ soaps. (Enter your response rounded to nearest whole number.)
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