(Answered) Express mail offers overnight delivery to customers it is

Management Studies

Express Mail offers overnight delivery to customers. It is attempting to come to some conclusion whether to expand its facilities. Currently its fixed costs are $2 million per month and its variable costs are $2 per package. It charges $12 per package and has a monthly volume of 2 million packages. If it expands, its fixed costs will rise by $1 million and its variable costs will fall to $1.50 per package. Should it expand?

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