A Product Is Currently Made in a Process-Focused Shop,where Fixed

question 69

Essay

A product is currently made in a process-focused shop,where fixed costs are $9,000 per year and variable costs are $50 per unit.The firm is considering a fundamental shift in process,to repetitive manufacturing.The new process would have fixed costs of $90,000,and variable costs of $5.What is the crossover point for these processes? For what range of outputs is each process appropriate?

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Definitions:

Artifacts

Physical objects produced or shaped by human craft, especially tools, weapons, or ornaments of historical, archaeological, or cultural interest.

Determine Behavior

The factors or mechanisms that influence or dictate how an individual behaves in various situations.

Tibetan Plateau

An elevated plateau region in Asia, sometimes called the "Roof of the World," known for its high altitudes and significant impact on climate.

Continental Collision

A convergent plate boundary that involves the collision of two masses of continental crust.