Washburn recently purchased Parker Guitar,another guitar manufacturer that designed products for professionals and collectors,and will combine the two production facilities into a new location.Washburn expects the acquisition to reduce its rent and tax expenses by 40 percent,and the new skilled employees will reduce the hours of work needed for each unit by 15 percent.This would cause the slope of the total cost curve to _________ and the break-even quantity to _________.

Question

Quizplus · Accepted Answer

The acquisition is expected to reduce costs, which would decrease the slope of the total cost curve. Additionally, with lower costs, the break-even quantity would also decrease.

Washburn Recently Purchased Parker Guitar,another Guitar Manufacturer That Designed Products