Question
Quatro Hermanas is investigating implementing some new production machinery as part of its operations. Three alternatives have been identified, and they have the following fixed
Quatro Hermanas is investigating implementing some new production machinery as part of its operations. Three alternatives have been identified, and they have the following fixed and variable cost:
Alternative A) (annual fixed cost: $100,000 annual variable cost per unit:$20.00)
Alternative B) (annual fixed cost: $200,000 annual variable cost per unit:$5.00)
Alternative C) (annual fixed cost: $150,000 annual variable cost per unit:$7.50)
Determine the ranges of production ( units produced per year) over which each alternative would be recommended up to 30,000 units per year
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