Karla's Candle Factory Is Considering Two Different Manufacturing Options

question 20

Essay

Karla's candle factory is considering two different manufacturing options.Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.If demand for Karla's candles is 25,000,which option should she pick?

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Definitions:

Minority Group

A group of people who, because of their physical or cultural characteristics, find themselves in situations of inequality within a society.

Racism

Connotes discrimination or prejudice against individuals based on their race or ethnicity, often stemming from beliefs in the superiority of one race over others.

United States

A country in North America consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Race Consciousness

An ideology that acknowledges race as a powerful social construct that shapes our individual and social experiences.