Kirstin is thinking about opening a Chinese restaurant and needs to buy a rice cooker. Rice Cooker A has fixed costs of $100 and variable costs of $1/pound. Rice Cooker B has fixed costs of $500 and variable costs of $.1/pound. If Kirstin plans to sell 100 pounds of rice which rice cooker should she choose? What is the cross-over point?

Question

Quizplus · Accepted Answer

The Answer of Kirstin is thinking about opening a Chinese restaurant and needs to buy a rice cooker. Rice Cooker A has fixed costs of $100 and variable costs of $1/pound. Rice Cooker B has fixed costs of $500 and variable costs of $.1/pound. If Kirstin plans to sell 100 pounds of rice which rice cooker should she choose? What is the cross-over point?

Kirstin Is Thinking About Opening a Chinese Restaurant and Needs