A company is considering two options for the production of a part needed downstream in the manufacturing process. Detail

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A company is considering two options for the production of a part needed downstream in the manufacturing process. Detail

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A Company Is Considering Two Options For The Production Of A Part Needed Downstream In The Manufacturing Process Detail 1
A Company Is Considering Two Options For The Production Of A Part Needed Downstream In The Manufacturing Process Detail 1 (21.77 KiB) Viewed 10 times
A company is considering two options for the production of a part needed downstream in the manufacturing process. Details about fixed and variable costs are as follows. Specialized automation: fixed cost $859,800 per month, variable cost $4 per unit. General automation: fixed cost $171,000 per month, variable cost $12 per unit. CIEN What is the monthly break-even quantity between the two automation approaches? The break-even quantity is units per month. For which of the following scenarios should the firm choose general automation? OA. The firm needs to produce 94,710 parts per month. OB. The firm needs to produce 73,185 parts per month. OC. The firm needs to produce 90,405 parts per month. OD. The firm needs to produce 99,015 parts per month.
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