Homework Answers
The number of units 69,729 Company A have the same overall cost as Company B
Explanation
Annual overall cost of company A= Annual overall cost of company B
[($19,335/ year) + ($0.47/ unit) * (x units/ year)] = [($9,573/ year) + ($0.61/ unit) * (x units/ year)]
(0.61-0.47) x = (19,335 - 9,573)
0.14 x = 9,762
x = 9,762 / 0.14
x = 69,729 units per year
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