A wireless monitored process has fixed cost of $40,000 per year and variable cost of $30 per unit. An IoT-based process using “Internet of Things” technology has fixed costs of $80,000 per year. If the two processes break even at a production level of 4000 units per year, the variable cost of the IoTbased process is closest to: (a) $10 per unit (b) $20 per unit (c) $30 per unit (d) $40 per unit

A wireless monitored process has fixed cost of $40,000 per year and variable cost of $30 per unit. An IoT-based process using “Internet of Things” technology has fixed costs of $80,000 per year. If the two processes break even at a production level of 4000 units per year, the variable cost of the IoTbased process is closest to: (a) $10 per unit (b) $20 per unit (c) $30 per unit (d) $40 per unit

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 1.1CE

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