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:

New England

A geographical region in the northeastern corner of the United States, comprising six states and known for its colonial history, educational institutions, and distinct seasons.

Patriarchal Family Patterns

Social or cultural systems in which men hold primary power and predominate in roles of political leadership, moral authority, and control of property.

Pilgrims

Early settlers of the Plymouth Colony in present-day Massachusetts, who sought religious freedom and are celebrated in the United States during Thanksgiving.

Land In Common

Refers to community-owned land that is not owned privately but managed and used by a group of people collectively.