You are choosing from between the following four processes, each with a different fixed cost, and variable costs. Process Fixed Variable A 20,000 15 B 10,000 12 C 5,000 10 D 8,000 9.3 Because I can only ask a single quantifiable question, I can't easily ask you to tell me which process is the cheapest from 0 to whatever, and then something else is cheapest for a while, etc. What is the point where D becomes cheaper than C? Round your answer to the closest whole number.
You are choosing from between the following four processes, each with a different fixed cost, and variable costs. Process Fixed Variable A 20,000 15 B 10,000 12 C 5,000 10 D 8,000 9.3 Because I can only ask a single quantifiable question, I can't easily ask you to tell me which process is the cheapest from 0 to whatever, and then something else is cheapest for a while, etc. What is the point where D becomes cheaper than C? Round your answer to the closest whole number.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
You are choosing from between the following four processes, each with a different fixed cost, and variable costs.
| Process | Fixed | Variable |
| A | 20,000 | 15 |
| B | 10,000 | 12 |
| C | 5,000 | 10 |
| D | 8,000 | 9.3 |
Because I can only ask a single quantifiable question, I can't easily ask you to tell me which process is the cheapest from 0 to whatever, and then something else is cheapest for a while, etc.
What is the point where D becomes cheaper than C? Round your answer to the closest whole number.
Expert Solution
Step 1
Given,
| Process | Fixed | Variable |
| A | 20,000 | 15 |
| B | 10,000 | 12 |
| C | 5,000 | 10 |
| D | 8,000 | 9.3 |
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