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Production process b to be preferred over production process

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Reference no: EM132056131

A Production Process A has a fixed cost of $340,000 and a variable cost of $145 per unit. Production Process B for the same product has the fixed cost of $1,250,000 and variable cost of $95.50 per unit. How many units should be produced by Production Process B to be preferred over Production Process A? The sale price is $200 per unit.

Reference no: EM132056131

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