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10. You manage a Low Volume : High Variety plant. Fixed cost per month is $75,000 and variable cost is $4.50 per piece. Your
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Answer #1

Let, the production volume = X

Then,

75000 + 4.5*X = 170000 + 2*X

X = (170000-75000)/(4.5-2)

X = 38000 units

So, production volume of more than 38000 units (or 38000 units) per month, will make it less costly to run the high volume, low variety set up.

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