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Mathematics, 22.09.2021 09:10 20hadams
A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $260,000 per year, and variable costs would be $510 per boat. Subcontracting would involve a cost per boat of $2,620, and expansion would require an annual fixed cost of $60,000 and a variable cost of $1,010 per boat.
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A company that produces pleasure boats has decided to expand one of its lines. Current facilities ar...
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