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A firm in its plans for a new facility is considering two production technologies, A and B. Technology A involves higher variable costs techniques; technology B relies on higher fixed cost production techniques. The unit product price f, average variable cost, and fixed costs for technology A are $.50, $.25, and $100, respectively; for technology B these values are $.50, $.10, and $200, respectively.
Calculate the break-even volume for both technologies, then graph both options on a single graph.
Calculate the amounts that the Village of Delmar should report as expenses for each of its programs in its government wide statement of activities for the year ended December 31,2013.
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