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Karla's Candle Factory Is Considering Two Different Machines

Question 126

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Karla's candle factory is considering two different machines. Machine A is highly automated with FC of $25,000 and VC of $.1/candle. Machine B is actually no machine but rather hand labor with FC of $10,000 and VC of $.5/candle. If demand for Karla's candles is 25,000, which machine should she pick?

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Machine A: $25,000+.1(25000)= ...

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