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Business, 08.02.2022 22:00 tannercarr3441

A company needs to replace on old machine that is used to produce a primary product. The selling price of the product will be $219 per unit. Two different machines that could produce the product are being considered. Machine A would have an annual fixed cost of $9,500 and a variable cost per unit of $119. Machine B would have an annual fixed cost of $7,900 and a variable cost per unit of $128. a. Compute the annual break-even quantity for each machine. b. Based on annual cost, at what annual volume would the company be indifferent to purchasing Machine A or B

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