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We Love Golf produces golf carts and is considering adding a new high-quality golf cart to its portfolio. Each golf cart will sell for $15,000.
We Love Golf" produces golf carts and is considering adding a new high-quality golf cart to its portfolio. Each golf cart will sell for $15,000. Materials needed are $8,000 per one golf cart. Production workers will be paid $50 per hour. Management has two options for the proposed production facilities. Option 1 uses workers to do most (but not all) of the production steps; therefore, this option requires 100 labor-hours per unit and $10,000 of monthly fixed overhead costs. Option 2 is more automated; it only requires 20 labor-hours per unit, but it requires $90,000 of monthly fixed overhead costs. At what monthly unit sales level would management be indifferent between the two options
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