What is the crossover point in units for the processes

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Reference no: EM132102047

California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $82,000 per month and a variable cost of $1.55 per bag. Clunker has a fixed cost of only $43,000 per month, but a variable cost of $2.05. Selling price is $3.103.10 per bag.

a) What is the crossover point in units (point of indifference) for the processes? Round to nearest whole number.

Reference no: EM132102047

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