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Business, 05.02.2021 21:40, hannahbear3747
Angelique runs a business making cell-phone cases. She started her business making custom 3-D printed cases. To make those she must pay a fixed cost of $ 44 to use the library's 3-D printer along with a per-unit cost of $3 for the plastic and the time to design and print the cases. Angelique is considering purchasing a plastic mold to make the cases instead. The mold would cost $ 68 up front, but once she has purchased it her per-unit cost drops to $1. Assume that the mold will last for one month.
If Angelique expects to produce 22 cell-phone cases over the next month, which production method should she use?
Choose one:
A. 3-D printing
B. plastic mold
C. Neither; she should shut down production.
D. She is indifferent; the average cost is the same.
If Angelique expects to produce 7 cell-phone cases over the next month, which production method should she use?
Choose one:
A. 3-D printing
B. plastic mold
C. Neither; she should enter a new market.
D. She is indifferent; the costs are the same.
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Answers: 1
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