Business, 14.11.2019 01:31, christson805
Although it will fulfill her lifelong dream, patricia is not confident that demand for her tiny trisha doll will exceed the breakeven point computed in the previous problem. if she chooses a less appealing site and does more of the work by hand, her initial investment cost can be reduced to $12,000, but her per-unit cost of manufacture will rise to $24 per doll. a. what is the breakeven point for this new process? tc=12 000 + 24*v tr stays v*40 new break even: 12 000 +24v = 40v 12 000 = 16v v=750 the new break even point is 750 dolls. b. compare this process to the process proposed on problem 2. for what volume of demand should patricia choose this process?
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