Process A has a fixed cost of $160,000 per yearand 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 willthe annual fixed cost have to be for Process B inorder for the two alternatives to have the same annualtotal cost at a production rate of 1000 unitsper year?
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