How many units must be produced and sold

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A labor intensive process has a fixed cost of $338,000 and a variable cost of $143 per unit. A capital intensive (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.

Reference no: EM13266493

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