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A manager is trying to decide between two possible production processes. Process A would entail a variable cost of $33.24 per unit and an annual
A manager is trying to decide between two possible production processes. Process A would entail a variable cost of $33.24 per unit and an annual fixed cost of $44,055. Process B would entail a variable cost of $36.14 per unit and an annual fixed cost of $35,748.
The output generated using Process A would sell for $78 per unit while the output generated using Process B would sell for $72 per unit.
What is the volume for which the manager is indifferent between these two processes?
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