Widgets sell for 500 widgets have a fixed cost of 10000 and

Reference no: EM13622629

The Doodad firm can produce either widgets or gadgets.
Widgets sell for $5.00. Widgets have a fixed cost of $10,000 and a per unit variable cost of $3.00. Gadgets sell for $5.00. Gadgets have a fixed cost of $25,000 and a per unit variable cost of $2.00. Calculate the indifference point for widgets and gadgets AND interpret the results.

Reference no: EM13622629

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