Consider the following information as part of a breakeven
analysis:
Cost of Production:
Number of Units
Cost ($)
0
o
700
4,900
Cost of...
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Economics
Consider the following information as part of a breakevenanalysis:
Cost of Production:
Number of Units
Cost ($)
0
o
700
4,900
Cost of Buying
Number of Units
Cost ($)
0
1,500
700
3,600
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
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