A producer of pottery is considering the addition of a new plant to absorb the backlog...

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business Operations-Management

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Answer 1

Answer #1

Between P1 and P3 = (FC of P1 - FC of P3)/(VC of P3 - VC of P1)

= (9835-6589)/(1.15-.76)

= 8323.077 = 8323 units

Between P1 and P2 =

(FC of P2 - FC of P1)/(VC of P1 - VC of P2)

= (15681 - 9835)/(.76 - .61)

= 38973.33 = 38973 units

P3<=8323

8323<=P1<=38973

P2>=38973

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Answer 2

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