Suppose we are facing making an investment in one of two projects: Project A and...
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Accounting
Suppose we are facing making an investment in one of two projects: Project A and Project B. Information about the projects follow:
Project A Project B
Sales price per unit $30 $30
Variable cost per unit $12 $5
Total fixed cost $200,000 $300,000
At what sales volume will Project A just cover the opportunity cost of selecting Project B? This seems to me the same question as "where are the profits from the two projects equal?"
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