Equipment to make their production process more efficient

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Reference no: EM132226601

A company is considering upgrading their manufacturing equipment to make their production process more efficient. Their current manufacturing process has a monthly fixed cost of $100,000 plus variable costs (including materials) of $25 per part. The new equipment they are considering will reduce their variable cost to $20 per part and have a monthly fixed cost of $150,000. How many units are required each month to make the purchase of the new equipment viable?

Reference no: EM132226601

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