2) A certain part can be obtained by either of two methods. Method X will have fixed costs of $50,000 per year and variable costs of $25 per unit. Method Y will have fixed costs of $80,000 per year and variable costs of $8 per unit. The number of units that must be produced each year for the two methods to breakeven is closest to D 1,765 1,921 2,365 2,832 11) iv)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 1.1CE
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2) A certain part can be obtained by either of two methods. Method X will have fixed costs
of $50,000 per year and variable costs of $25 per unit. Method Y will have fixed costs of
$80,000 per year and variable costs of $8 per unit. The number of units that must be
produced each year for the two methods to breakeven is closest to
D
1,765
1,921
2,365
2,832
11)
111)
IV)
Transcribed Image Text:2) A certain part can be obtained by either of two methods. Method X will have fixed costs of $50,000 per year and variable costs of $25 per unit. Method Y will have fixed costs of $80,000 per year and variable costs of $8 per unit. The number of units that must be produced each year for the two methods to breakeven is closest to D 1,765 1,921 2,365 2,832 11) 111) IV)
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