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equipment and increase the selling price? 1-28 A distributer of prewashed shredded lettuce is opening a new plant and considering whether to use a
equipment and increase the selling price? 1-28 A distributer of prewashed shredded lettuce is opening a new plant and considering whether to use a mechanized process or a manual process to prepare the product. The manual process will have a fixed cost of $43,400 per month and a variable cost of $1.80 per 5-pound bag. The mechanized process would have a fixed cost of $84,600 per month and a variable cost of $1.30 per bag. The company expects to sell each bag of shredded let- tuce for $2.50.00 (a) Find the break-even point for each process. (b) What is the monthly profit or loss if the company chooses the manual process and sells 70,000 bags per month? rosb 13 1-3
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