Question
ACME Manufacturing currently produces its lead product on a machine that has a variable cost of $0.30 per unit, and fixed costs of $100,000.
ACME Manufacturing currently produces its lead product on a machine that has a variable cost of $0.30 per unit, and fixed costs of $100,000. The Operations Manager is considering purchasing a new machine that would drop the variable cost to $.26 per unit but has fixed costs of $200,000. What is the cross-over point between the two machines? 01.250,000 units 2.500,000 units O200.000 units O 1.875,000 units 2.350.000 units
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Horngrens Accounting
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
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9780134487151, 013448715X, 978-0134674681
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