Automated process to be preferred

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A labor-intensive process has a fixed cost of $338,000 and a variable cost of $143 per unit. A capitalintensive (automated) process for the same product has a fixed cost of $1,244,000 and a variable cost of $92.50 per unit. How many units must be produced and sold at $197 each for the automated process to be preferred to the labor-intensive process. Contributed by Paul R. McCright, University of South Florida.

Reference no: EM131807870

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