Essay
Kirstin is thinking about opening a Chinese restaurant and needs to buy a rice cooker. Machine A has fixed costs of $100 and variable costs of $1/pound. Machine B has fixed costs of $500 and variable costs of $0.10/pound. If Kirstin plans to sell 1000 pounds of rice, which machine should she choose? What is the crossover point?
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Machine A costs 100 + 1(1000) ...View Answer
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