A rotational molding operation has fixed costs of $10,000 per year and variable costs of $50 per unit. If the process is automated via conveyor, its fixed cost will be $22,800 per year but its variable cost will be only $10 per unit. Determine the number of units each year necessary for the two operations to break even.
What will be an ideal response?
x = number of units per year
10,000 + 50x = 22,800 + 10x
x = 320
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