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Your company is implementing a new production line for making solar panels. The company has two main alternatives in setting up the production line: either
Your company is implementing a new production line for making solar panels. The company has two main alternatives in setting up the production line: either use highly automated equipment or use generalpurpose equipment. Cost information for these two options is as follows:
tableALTERNATIVEFIXED COST,VARIABLE COSTAutomated Equipment,$ per year,$ per unitGeneralPurpose Equipment,$ per year,$ per unit
Use Scenario to solve this mystery. At an annual requirement of units, what does the company save per year by selecting the lowercost option?
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