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A firm is considering three capacity alternatives: A , B , and C . Alternative A would have an annual fixed cost of $ 1
A firm is considering three capacity alternatives: A B and C Alternative A would have an annual fixed cost of $ and variable costs of $ per unit. Alternative B would have annual fixed costs of $ and variable costs of $ per unit. Alternative C would have fixed costs of $ and variable costs of $ per unit. Revenue is expected to be $ per unit.
Compute all three Breakeven Points. What is the value of the lowest breakeven quantity?
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Compute the Profit for units for all three alternatives. What is the highest profit that could be made for an annual output of units?
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For each alternative, compute the volume required to generate a profit of $ What is the lowest volume of output required to generate an annual profit of $
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