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Business, 06.05.2020 07:04 kenzie3497

A company is considering two options for the production of a part needed downstream in the manufacturing process. Details about fixed and variable costs are as follows.

Specialized automation: Fixed cost= $1,395,200 per month, Variable cost = $13 per unit.
General automation: Fixed cost= $180,000 per month, Variable cost= $27 per unit.

What is the monthly break-even quantity between the two automation approaches?

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