hws Help Save&ExitSubmit; 0 You skipped this question in the previous attempt Pr
ID: 1131336 • Letter: H
Question
hws Help Save&ExitSubmit; 0 You skipped this question in the previous attempt Process A has a fixed cost of $190,000 per year and a variable cost of $59 per unit. For Process B, 10 units can be produced in 1 day at a cost of $260 If the company's MARR is 10% per year, what wil the annual foed cost have to be for Process B in order for the two alternatives to have the same annual total cost at a production rate of 6000 units per year? The annual fixed cost for process B in order for the two alternatives to have the same annual total cost is determined to be s D 10 points 04:3222 Skipped Hint K Prex 10 of 13 NextExplanation / Answer
We have to find an answer as below with appropriate steps.
190000+(59*6000)÷1.1=A+ (260÷10*6000)÷1.1
190000+33×60/1.1=A
190000+1980/1.1=A=191800
Therefore answer is 191800
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