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barxatty [35]
3 years ago
14

Two production methods are being compared. One manual and the other automated. The manual method produces 10 pc per hour and req

uires one worker at $ 15.00 per hour. Fixed cost of the manual method is $ 5,000 per year. The automated method produces 25 pc per hour, has a fixed cost of $ 55,000 per year, and a variable cost of $ 4.50 per hour. Determine the Break – Even Point (BEP) for the two methods; that is, determine the annual production quantity at which the two methods have the same annual cost. Ignore the cost of material used in the two methods

Engineering
1 answer:
Genrish500 [490]3 years ago
6 0

Answer:

Check the explanation

Explanation:

Kindly check the attached image below to see the step by step explanation to the question above.

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