Branch B: One of the investors wanted to buy a factory for the production of electrical transformers. It was found that the total fixed cost of the plant was (1,000,000) dollars of Japanese origin and (800,000) dollars of Korean origin, and the total variable costs were calculated to produce (100,000) transformers (in the form of raw materials, wages of workers and maintenance). $500,000 for the Japanese lab and $700,000 for the Korean lab. If you were assigned to prepare a study of the economic feasibility of the laboratory. Which one do you suggest to recommend to the investor to buy, and on what basis is the comparison made? Like drawing and analysis.

Branch B: One of the investors wanted to buy a factory for the production of electrical transformers. It was found that the total fixed cost of the plant was (1,000,000) dollars of Japanese origin and (800,000) dollars of Korean origin, and the total variable costs were calculated to produce (100,000) transformers (in the form of raw materials, wages of workers and maintenance). $500,000 for the Japanese lab and $700,000 for the Korean lab. If you were assigned to prepare a study of the economic feasibility of the laboratory. Which one do you suggest to recommend to the investor to buy, and on what basis is the comparison made? Like drawing and analysis.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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