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ACC - Twizzlers Candy Company

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Question;Twizzlers Candy Company is considering a new manufacturing process to produce new strawberry twists. Two processes have been identified that can produce the same production level of twists. The first process would incur $360,000 of fixed costs and $.06 per unit variable costs. The second process has fixed costs of $120,000 and variable costs of $.12 per unit.(a) What is the breakeven quantity beyond which the first process is more attractive?(b) What is the difference in total cost if the quantity produced is 5,000,000 units?

 

Paper#44137 | Written in 18-Jul-2015

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