Big johns manufacturing currently produces its lead product, Ask an Expert

Management Studies

Big John's Manufacturing currently produces its lead product on a machine that has a variable cost of $0.32 per unit, and fixed costs of $75,000. Big John is considering purchasing a new machine that would drop the variable cost to $.28 per unit, but has fixed costs of $150,000. What is the cross-over point between the two machines?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91900859

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