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Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the
Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur of fixed cost and add of variable cost to each casting Spartan produces. The second process has fixed costs of and adds of variable cost per casting.
Part
a What is the breakeven quantity beyond which the first process is more attractive?
The breakeven quantity is
castings. Enter your response as an integer.
Part
b What is the difference in total cost if the quantity produced is
The total cost of
process
is greater. The difference in total cost is $
Enter your response as an integer.
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