Engineering, 23.11.2020 01:00 morris9878

A plant operation has fixed costs of $2,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is $40 per unit, and the product
sells for $90 per unit.
a. Construct the economic breakeven chart.
b. Compare annual profit when the plant is operating at 90% of capacity with
the plant operation at 100% capacity. Assume that the first 90% of capacity
output is sold at $90 per unit and that the remaining 10% of production is sold at
$70 per unit.

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A plant operation has fixed costs of $2,000,000 per year, and its output capacity is 100,000 electr...

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