Montclair electronics is currently producing 150000 video, Ask an Expert

Management Studies

Montclair Electronics is currently producing 150,000 video telephones a year at the plant in New Jersey. The annual fixed cost is $0.7 million and the variable cost per unit is $5 at the New Jersey plant. The company is considering outsourcing the production to Mexico, which will increase the annual fixed cost to $1 million but reduce the variable cost to $2 per unit. What is the break-even quantity in this case

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91900205

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