PROBLEM B Use the following to answer questions Ann is the president of the Paper Supply Company. She is thinking about
Posted: Sun Jul 03, 2022 4:27 pm
PROBLEM B
Use the following to answer questions
Ann is the president of the Paper Supply Company. She isthinking about using different technology to produce the papergoods her company sells. Sales have been increasing and arecurrently around 18,000 tons per year. She has identified thefollowing potential options:
Alternative 1 - Use the current technology with annualfixed costs of $15,000 and variable costs of $11 perton.
Alternative 2 - Adopt the latest technology resulting inannual fixed costs of $45,000 and variable costs of $7 perton.
Alternative 3 - Update the current technology resultingin annual fixed costs of $25,000 and variable costs of $9 perton.
Which alternative would you recommend?
a. Alternative 1
b. Alternative 2
c. Alternative 3
d. Any of the above
Use the following to answer questions
Ann is the president of the Paper Supply Company. She isthinking about using different technology to produce the papergoods her company sells. Sales have been increasing and arecurrently around 18,000 tons per year. She has identified thefollowing potential options:
Alternative 1 - Use the current technology with annualfixed costs of $15,000 and variable costs of $11 perton.
Alternative 2 - Adopt the latest technology resulting inannual fixed costs of $45,000 and variable costs of $7 perton.
Alternative 3 - Update the current technology resultingin annual fixed costs of $25,000 and variable costs of $9 perton.
Which alternative would you recommend?
a. Alternative 1
b. Alternative 2
c. Alternative 3
d. Any of the above