Process A has a fixed cost of $160,000 per year and a variable cost of $50 per unit. For Process B, 10 units can be produced in 1 day at a cost of $200. If the company’s MARR is 10% per year, what...


Process A has a fixed cost of $160,000 per year

and a variable cost of $50 per unit. For Process B,

10 units can be produced in 1 day at a cost of $200.

If the company’s MARR is 10% per year, what will

the annual fixed cost have to be for Process B in

order for the two alternatives to have the same annual

total cost at a production rate of 1000 units

per year?



Jun 04, 2022
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