Essay
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 $0.10/candle. Option B uses hand labor with fixed costs of $10,000 and variable costs of $0.50/candle. If demand for Karla's candles is 45,000, which option should she pick?
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Option A: $25,000 + .1(45,000)...View Answer
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