19. Edifer Tools, Inc. uses a semi-automated process in its production. It is faced with...
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19. Edifer Tools, Inc. uses a semi-automated process in its production. It is faced with a proposal to completely automate its production. Below are data for these alternative methods: Complete Semi- Automation Automated Materials cost per unit P12.00 P10.50 Labor cost per unit 3.00 15.00 Other variable cost per unit 4.50 3.00 Lease cost per year 75,000 30,000 Maintenance cost per year 15,000 6,000 The cost indifference point is at a. 3,300 units c. 6,000 units b. 3,000 units d. 6,300 units
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