What range of output would the new equipment be purchased

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C&A currently has fixed costs of $200 per month and variable cost of $40 per unit for its production operations. They are considering the purchase of a new equipment that will raise the fixed costs to $500 per month but reduce the variable cost to $30 per unit. For what range of output would the new equipment be purchased?

Less than 40

More than 40

More than 30

Less than 30

Equal to 30

Reference no: EM13785906

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