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Two production methods are being considered for making thermal dryers. Method 1 has a fixed cost of $1,000 and a variable cost of $20 per
Two production methods are being considered for making thermal dryers. Method 1 has a fixed cost of $1,000 and a variable cost of $20 per unit. Method 2 has a fixed cost of $400 and a variable cost of $100 per unit. For what range of production volumes would you prefer each method?
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