Use the following setup for the next question.
A firm is deciding between two different sewing machines.Technology A has fixed costs of $500 and marginal costs of $50 whereas Technology B has fixed costs of $250 and marginal costs of $100.
-If the price is $110 per unit,what is the break even amount of units for technology B?
A)20
B)25
C)30
D)None-They would have to shut down

Question

​Use the following setup for the next question.
A firm is deciding between two different sewing machines.Technology A has fixed costs of $500 and marginal costs of $50 whereas Technology B has fixed costs of $250 and marginal costs of $100.
-​If the price is $110 per unit,what is the break even amount of units for technology B?
A)​20
B)25
C)30
D)​None-They would have to shut down

Quizplus · Accepted Answer

To find the break-even amount of units for Technology B, we use the formula for break-even quantity: Fixed Costs / (Price - Marginal Costs). For Technology B, this is $250 / ($110 - $100) = $250 / $10 = 25 units.

​Use the Following Setup for the Next Question

Use the Following Setup for the Next Question