just need help with d and eSpeak A distributor of fasteners is opening a new plant and considering whether to use a mechanizedprocess or a manual process to package the product. The manual process will have a fixed cost of$36,234 and a variable cost of $2.14 per bag. The mechanized process would have a fixed cost of$84,420 and a variable cost of $1.85 per bag. The company expects to sell each bag of fasteners for$2.75.a) What is the break-even point for the manual process (in units)?b) What is the break-even point for the mechanized process (in units)?c) A point of indifference for two processes is quantity at which each process generates the sameamount of profit (review video). What is the point of indifference for the two processes?(Hint: 1) Use equations to set profit of manual process equal to mechanized process and solvefor quantity; 2) (Excel) If you have a break-even for each process - have only one cell thatrepresents quantity that be used to calculates costs/revenues for each process and use GoalSeek to calculate quantity that would set the difference to zero).d) Which process would you select if the quantity that is sold is greater than the quantity calculatedas the point of indifference?e) Which process would you select in the quantity sold is less than the quantity calculated as thepoint of indifference?

The point of indifference, also known as the breakeven point, is the level of production or sales at…

A distributor of fasteners is opening a new plant and considering whether to use a mechanized process or a manual process to package the product. The manual process will have a fixed cost of $36,234 and a variable cost of $2.14 per bag. The mechanized process would have a fixed cost of $84,420 and a variable cost of $1.85 per bag. The company expects to sell each bag of fasteners for $2.75.

A distributor of fasteners is opening a new plant and considering whether to use a mechanized process or a manual process to package the product. The manual process will have a fixed cost of $36,234 and a variable cost of $2.14 per bag. The mechanized process would have a fixed cost of $84,420 and a variable cost of $1.85 per bag. The company expects to sell each bag of fasteners for $2.75.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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