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Consider the following information as part of a breakeven analysis: Cost of Production: Number of Units Cost ($) 0 o 700 4,900 Cost of...

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Economics

Consider the following information as part of a breakevenanalysis:

  1. Cost of Production:
    Number of UnitsCost ($)
    0o
    7004,900
  2. Cost of Buying
Number of UnitsCost ($)
01,500
7003,600
  • What would be the equation for the production cost?
  • What would be the equation for the buying cost?
  • What is the breakeven # Unis?
  • What is the breakeven amout?
  • If you were only interested in 400 units, which option shouldbe selected?
  • If you were only interested in 200 units, which option shouldbe selected?

Answer & Explanation Solved by verified expert
4.2 Ratings (843 Votes)
a Let the equation for the cost of production be CPq A Bq When q 0 CP0 0 A B0 0 A 0 When q 700 CP700 4900 B700 4900 B 4900700 B 7 Therefore the equation for the cost of    See Answer
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