question archive A plant operation has fixed costs of $2,000,000 per year, and its output capacity is 100,000 electrical appliances per year
A plant operation has fixed costs of $2,000,000 per year, and its output capacity is 100,000 electrical appliances per year
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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 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.
- Construct the economic breakeven chart.
- Compare annual profit when the plant is operating at 90% of capacity with the plant operation at 100% capacity given 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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