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Your insurance firm processes claims through its two facilities: facility A and facility B. Each month, facility A handles 9,000 claims and incurs in $162,000 fixed costs and $180,000 in variable costs. Each month, facility B handles 11,000 and incurs $95,000 in fixed costs and $143,000 in variable costs.
Required:
If you anticipate a decrease in the number of claims, where will you lay off workers?
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Your insurance firm processes claims through its two facilities: facility A and facility B. Each mon...
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