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A production process has fixed costs of $23,000 per year and variable costs of $33 per unit. If the process is automated, the fixed costs
A production process has fixed costs of $23,000 per year and variable costs of $33 per unit. If the process is automated, the fixed costs will be $38,000 per year, and the variable expenses will be reduced to only $15 per unit. Determine the production quantity for the two production processes to breakeven.
Hint: Quantity = enter whole numbers. If the answer found is not a whole number, round up or down to the next nearest whole number.
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