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Business, 25.01.2020 04:31, dessyrob05
Big john's manufacturing company currently produces its lead product on an "old machine" that has a variable cost of $0.32 per unit, and a fixed cost of $75,000. big john is considering purchasing a "new machine" that will drop the variable cost to $0.28 per unit, but has a fixed cost of $150,000. the crossover point for these two processes is 1,875,000 units. referring to scenario 1 above, which process is the most cost effective for a volume of 460,025 units?
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