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California​ Gardens, Inc.,​ prewashes, shreds, and distributes a variety of salad mixes in​ 2-pound bags. Doug​ Voss, Operations​ VP, is considering a new​ Hi-Speed shredder to replace the old​ machine, referred to in the shop as​ "Clunker." Hi-Speed will have a fixed cost of ​$89 comma 000 per month and a variable cost of ​$1.25 per bag. Clunker has a fixed cost of only ​$30 comma 000 per​ month, but a variable cost of ​$1.65. Selling price is ​$2.50 per bag. ​a) What is the crossover point in units​ (point of​ indifference) for the​ processes? The crossover point is nothing units. ​(Round your response to the nearest whole​ number.)

Respuesta :

facundobuzzetti

Answer:

131,111 units

Explanation:

Giving the following information:

Hi-Speed will have a fixed cost of ​$89,000 per month and a variable cost of ​$1.25 per bag. Clunker has a fixed cost of only ​$30,000 per​ month, but a variable cost of ​$1.65.

Hi-Speed= 89000 + 1.25*x

Clunker= 30,000 + 1.65*x

30,000 + 1.65x = 89,000 + 1.25x

0.45x = 59,000

x= 131,111 units

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