Question
Difference in production process (Finance the project the same either way) Mfg. Corp of America is using an old production process. Under this old process,
Difference in production process (Finance the project the same either way)
Mfg. Corp of America is using an old production process. Under this old process, they expect to have $175,000 of total variable costs and $90,000 of total fixed costs for expected sales of 8,000 units. The price of each unit is $50. Mfg. Corp. is considering a choice of 2 new processes to use. It's sales will be 11,000 units with either of the new processes in place. Price per unit will remain $50. It's total variable and fixed costs under the new plans are as follows:
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