Jackson Custom Machine Shop has a contract for 158,168 units of a new product. Sam Jumper, the owner, has calculated the

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Jackson Custom Machine Shop has a contract for 158,168 units of a new product. Sam Jumper, the owner, has calculated the

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Jackson Custom Machine Shop Has A Contract For 158 168 Units Of A New Product Sam Jumper The Owner Has Calculated The 1
Jackson Custom Machine Shop Has A Contract For 158 168 Units Of A New Product Sam Jumper The Owner Has Calculated The 1 (18.94 KiB) Viewed 10 times
Jackson Custom Machine Shop has a contract for 158,168 units of a new product. Sam Jumper, the owner, has calculated the cost for two process alternatives. Fixed costs will be: for A equipment (A), $100,000 and B automation (B), $900,000. Variable costs will be: A, $9 and B, $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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