Almona, Inc. is your dad’s company. It manufactures electrostatic generators for classroom demonstrations and has a capacity of 100,000 units per year. The fixed cost of the process is $150,000. If the generators sell for $90 each, what is the maximum variable cost per unit to break even when production is at 80% of capacity? The maximum variable cost is $ per unit.

Almona, Inc. is your dad’s company. It manufactures electrostatic generators for classroom demonstrations and has a capacity of 100,000 units per year. The fixed cost of the process is $150,000. If the generators sell for $90 each, what is the maximum variable cost per unit to break even when production is at 80% of capacity? The maximum variable cost is $ per unit.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 8MC

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