Basic business tool that mbas

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Reference no: EM131800356

Break-even analysis is another basic business tool that MBAs are expected to master. Read the attached file and use it to answer the following question

A firm in its plans for a new facility is considering two production technologies, A and B. Technology A involves higher variable costs techniques; technology B relies on higher fixed cost production techniques. The unit product price f, average variable cost, and fixed costs for technology A are $.50, $.25, and $100, respectively; for technology B these values are $.50, $.10, and $200, respectively.

Calculate the break-even volume for both technologies, then graph both options to show where total costs intersects total revenue.

Reference no: EM131800356

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