Answer to Question #90967 in Mechanical Engineering for Kibrom mulugeta
Two companies A & B, manufacture the same commodity. Company A uses a mechanized process, and company B relies mainly on manual labor. The fixed cost is $ 40,000 per month for A and $ 15,000 per month for B. The directly varying cost is $ 14 per unit for A and $ 52 per unit for B. The selling price is $ 85 per unit for each company. a) At what volume of production are the unit costs of the two companies identical? b) How many units must each company sell each month merely to avoid a loss”
Dear Kibrom mulugeta, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order
No comments. Be first!