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Bob's candle factory is considering three different manufacturing options. Option A uses hand labor with an intitial cost of $ 1 0 , 0 0
Bob's candle factory is considering three different manufacturing options. Option A uses hand labor with an intitial cost of $ and material costs of $ candle. Option B uses combination of hand and automation with an initial cost of $ and material costs of $ candle. Option C is highly automated with an initial cost of $ and material costs of $ candle.
a What are the crossover points? ABlank; BBlank; CBlank
b At what output does Option B become less expensive than Option ABlank
c At what output does Option C become less expensive than Option BBlank
d If the forecasted demand for candles is units, which option should Bob Candles's choose? Blank and what is the cost? Blank
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