Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. two different manufacturing processes are being co

Two different manufacturing processes are being considered for making a new product. The first process...

50.1K

Verified Solution

Question

Accounting

Two different manufacturing processes are being considered for making a new product. The first process is less
capital-intensive, with fixed costs of only $48,800 per year and variable costs of $665 per unit. The second process has
fixed costs of $401,000 but variable costs of only $190 per unit.
a. What is the break-even quantity, beyond which the second process becomes more attractive than the first?
The volume at which the second process becomes more attractive is units. (Enter your response rounded to the
nearest whole number.)
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students