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Cost of the three alternative methods of processing work in an office is stated below: A-Manual: Total fixed cost PM=3,000 Variable cost per case=48 B-Semi-Automatic:
Cost of the three alternative methods of processing work in an office is stated below:
A-Manual: Total fixed cost PM=3,000
Variable cost per case=48
B-Semi-Automatic:
Total fixed cost PM=9,000
Variable cost per case=28
C-Fully automatic:
Total fixed cost PM=25,000
Variable cost per case=8
Identify the indifference and state your results. For what volume of cases it will be preferred between each of A, B and C?
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