Karla would pick option (B) uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
<h3>
What is manufacturing?</h3>
- Manufacturing is the process of creating or producing items using equipment, labor, machines, tools, and chemical or biological processing or formulation.
- It is the essence of the economy's secondary sector.
- The phrase can relate to a wide range of human activities, from handcraft to high-tech, but it is most usually applied to industrial design, which involves the transformation of raw materials from the primary sector into finished commodities on a big scale.
To find which option will Karla pick:
- If the demand for Karla's candles is 25,000.
- Total Cost in Machine A = 25000 + 0.1*25000
- = $ 27500 Total
Therefore, Karla would pick option (B) uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
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The correct question is given below:
Karla's candle factory is considering two different manufacturing options.
Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.
Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
If the demand for Karla's candles is 25,000, which option should she pick?
