Palmetto Bay Machine Shop has a contract for 6,000 units of a new product. Samsung Jordan, the owner, has calculated the

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Palmetto Bay Machine Shop has a contract for 6,000 units of a new product. Samsung Jordan, the owner, has calculated the

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Palmetto Bay Machine Shop Has A Contract For 6 000 Units Of A New Product Samsung Jordan The Owner Has Calculated The 1
Palmetto Bay Machine Shop Has A Contract For 6 000 Units Of A New Product Samsung Jordan The Owner Has Calculated The 1 (18.42 KiB) Viewed 9 times
Palmetto Bay Machine Shop has a contract for 6,000 units of a new product. Samsung Jordan, the owner, has calculated the cost for two process alternatives. Fixed costs will be: for A equipment (A), $120,000 and B manufacturing (B), $90,000. Variable costs will be: A, $3.5; and B, $6.5. a) Identify the volume ranges where each process should be used. (15 points) b) Based on above question (a), which alternative should he choose? Explain your result. (5 points)
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