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kompoz [17]
3 years ago
11

A company is considering two designs for a machine in its manufacturing line. The first, called machine A, will cost $160000 in

fixed costs and will cost $80 per unit in variable costs, for each unit it produces. The second, called B, will cost $270000 in fixed costs and will cost $2 per unit in variable costs, for each unit it produces. At what volume of production will the two machines cost the same
Business
1 answer:
ExtremeBDS [4]3 years ago
6 0

Answer:

The indifference point is 1,410 units

Explanation:

Giving the following information:

Machine A:

Fixed costs= $160,000

Unitary variable cost= $80

Machine B:

Fixed costs= $270,000

Unitary variable cost= $2

<u>First, we need to structure the total cost formula for each machine:</u>

Machine A= 160,000 + 80x

Machine B= 270,000 + 2x

x= number of units

<u>Now, we equal both formulas and isolate x:</u>

160,000 + 80x = 270,000 + 2x

78x = 110,000

x= 110,000/78

x= 1,410 units

The indifference point is 1,410 units

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Elis [28]

The number of units of developing country currency required to purchase a basket of goods and services in a developing country that costs one dollar in the US is given by  Purchasing power parity. Thus the correct option is C.

<h3>What is Service?</h3>

Services are referred to as a type of goods that is offered to someone in terms of facilities like the one received in a restaurant or shopping mall. It is a type of commodity or product that is intangible in nature, one can only feel it.

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So, Purchasing power parity determines how many units of an emerging country's currency are necessary to purchase a basket of products and services in that country that cost one dollar in the United States.

Therefore, option C  is appropriate.

Learn more about  Purchasing power parity, here:

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The complete question is

he number of units of developing country currency required to purchase a basket of goods and services in a developing country that costs one dollar in the U.S. is given by?

a. GNI price deflator.

b. Human Development Index ranking.

c. Purchasing power parity.

d. The exchange rate.

7 0
2 years ago
Stefan is from Spain and is visiting Denmark. He finds himself very popular among native Danes because they like his casual and
VikaD [51]

Answer:

Explanation:

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3 0
2 years ago
If aggregate demand (ad and nominal gdp (gdp increase while the price level is constant, we would conclude that:
Ivahew [28]
If the aggregate demand is increasing while the price level remains constant, it means that the spending and consumption in a macroeconomic setting is increasing. Given the constant range prices, consumers are now able to spend more therefore pushing the demand higher.
8 0
3 years ago
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AysviL [449]

Answer:

실례합니다? 당신은 이것을 의미합니까?

Explanation:

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Kitty [74]
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3 0
3 years ago
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