A Company Is Considering Two Alternative Technologies for Manufacturing a Product

question 6

Essay

A company is considering two alternative technologies for manufacturing a product. The cost data are shown below. $\begin{array}{|l|c|c|}\hline & \text { A } & \text { B } \\\hline \text { Fixed Cost } & \$ 10,000 & \$ 25,000 \\\hline \text { Variable Cost } & \$ 35 / \text { unit } & \$ 15 / \text { unit } \\\hline\end{array}$ What is the breakeven volume, and under what circumstances should A be chosen?

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Definitions:

Emotional Intelligence

The ability to understand emotions in oneself and others in order to effectively manage one’s own behaviors and relationships with others.

Cognitive Dissonance

A psychological conflict resulting from incongruent beliefs and attitudes held simultaneously.

Creativity-Relevant Processes

Cognitive and behavioral processes that facilitate the production of novel and useful ideas or solutions.

Domain-Relevant Skills

The specific abilities and knowledge that are particularly valuable and applicable to a certain field or area of expertise.