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This third time I put this question. A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed
This third time I put this question.
A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of S 100,000 and variable costs of S22 per unit. Alternative B would have annual fixed costs of $120,000 and variable costs of S20 per unit. Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit. Revenue is expected to be $50 per unit. Which alternative has the lowest break-even quantity? Which alternative will produce the highest profits for- an annual output of 10,000 units? Which alternative would require the lowest volume of output to generate an annual profit of $50,000
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