What will the annual fixed cost have to be for process

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Process A has a fixed cost of $185,000 per year and a variable cost of $43 per unit. For Process B, 10 units can be produced in 1 day at a cost of $160. If the company’s MARR is 10% per year, what will the annual fixed cost have to be for Process B in order for the two alternatives to have the same annual total cost at a production rate of 9250 units per year?

The annual fixed cost for process B in order for the two alternatives to have the same annual total cost is determined to be $____.

Reference no: EM131883674

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