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Calculate the indifference point for widgets and gadgets

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Gavin Industries can either widgets or gadgets. Widgets sell for $6.00. Widgets have a fixed cost of $25,000 and per unit variable cost of $3.00. Gadgets sell for $6.00. Gadgets have a fixed cost of $30,000 and per unit variable cost of $1.00 Calculate the indifference point for widgets and gadgets and interpret the results.

Reference no: EM131908213

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