The fixed and variable costs (in u. s. dollars) for the new recycling plant that eldon yi is opening in australia are computed as follows: cost victoria perth fixed $1,000,000 $800,000 variable $73/unit $112/unit a) over what range is each city preferable?
1. victoria is preferable when the number of units is (more/less) than (enter your response as a whole number).
2. perth is preferable when the number of units is (more/less) (enter your response as a whole number).

1. If the units are more than the 5,129 units, than the Victoria is better

2. If the units are less than the 5,129 units, than the Perth is better

Explanation:

In this question, we have to compute the break even units by taking the difference of fixed cost and the variable cost which is shown below:

Break even points = Change in fixed cost ÷ change in variable cost per unit

where,

Change in fixed cost = $1,000,000 - $800,000 = $200,000

Change in variable cost per unit = $112 - $73 = $39

Now put these values to the above formula  

So, the value would equal to

= $200,000 ÷ $39 per unit

= 5,129 units

If the units are more than the 5,129 units, than the Victoria is better

If the units are less than the 5,129 units, than the Perth is better

a.   is the correct choice.

good luck. : )

answer; rapid growth in buyer demand and high buyer switching cost;