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505/137470/quizzes/501200 at Savories bar. Manage favorites now Question 4 0 / 10 pt Questions #4 and #5 are about the following situation. An automobile factory
505/137470/quizzes/501200 at Savories bar. Manage favorites now Question 4 0 / 10 pt Questions #4 and #5 are about the following situation. An automobile factory manager must decide whether to replace machinery on the factory's assembly line with new robotic machinery that will reduce the variable cost of installing a set of seats into new cars by $0.50. The annual fixed cost of operating the assembly line's current machinery is $225,000 and the variable cost with the current machinery is $5.35 per seat of seats installed in a new car. The annual fixed cost of the new robotic machinery would be $437.000 but the variable cost would fall to $4.85 per seat of seats installed. The factory's production schedule calls for producing 400.000 cars a year for the next five years. What is the breakeven point in this decision? That is, what number of cars produced a year would make the total costs of using the current machinery equal to the total cost of using the new robotic machinery? :376 000 400 030 448,000 0 424,000 hp
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