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Hi, I'm having trouble with the following problem/question: A small producer of machine tools wants to move to a larger building, and has identified two
Hi,
I'm having trouble with the following problem/question:
A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $190,000 and variable costs of $13,000 per unit; location B has annual fixed costs of $390,000 and variable costs of $9,000 per unit. The finished items sell for $20,500 each.
For what range of output would location A be superior?(Enter your answer as a whole number. Do not include the indifference point in your answer.)
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