A Firm Must Make a Choice Between a Manual and a Semi-Automatic

question 21

Essay

A firm must make a choice between a manual and a semi-automatic production process for a new product line. Following are the costs for each process:
$$\begin{array} { l c c } \text { Alternatve } & \text { Fixed Cost } & \text { Variable Cost } \\\text { Manual }& \$ 100,000 & \$ 75.00 \\\text { Semi-Automatic } & \$ 300,000 & \$ 50.00\end{array}$$
a. Above what break-even production quantity would the semi-automatic alternative be preferred?
b. Which process is more economical for an annual production volume of 5,000 units?
c. Which process is more economical for an annual production volume of 10,000 units?

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Definitions:

Young Children

Refers to the early stages of human development, typically considered from birth to around 8 years old.

Observation

Observation involves carefully watching, listening, and noting the phenomena or behavior studied as a method of gathering information for analysis.

Imitation

The act of copying the behavior, actions, or expressions of another individual.

Infant's Development

The physical, cognitive, emotional, and social changes that occur in human infants from birth to the end of the infant stage, roughly around age 2.