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production management question The foxd ovethead cost is CO,000 for the time petiod in question. The firm ertimares it can sell 500 blcycles per weck
production management question
The foxd ovethead cost is CO,000 for the time petiod in question. The firm ertimares it can sell 500 blcycles per weck at a prict of 6300 each, (a) Calculate the budgeted profits breax even point and margin of salety. (b) If the firm testimates if could ralse price to ca00 and seli 300 blcycles, what would you recominend? Bxplain your icaspnting (c) If the firm remains with the pricing strategy in (a) but finds a new, more caplal intensive process which ralses fored costs to fo0,000 per time petiod but reduces variable costs to fiso per unit, what would you recommend? Explato your reasoning Step by Step Solution
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