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Question: Two different manufacturing processes are being considered for making a new product. The first process is less? capital-intensive, with fixed costs of only $50,200 per year and variable costs of $ 675 per unit. The second process has fixed costs of $404,000 but variable costs of only $210 per unit.

a. What is the break-even quantity, beyond which the second process becomes more attractive than the first? The volume at which the second process becomes more attractive is ____ units. (Enter your response rounded to the nearest whole number.)

Management Theories, Management Studies

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