The fixed cost to restart production is $104,400 per model. Once production starts the variable cost...

The fixed cost to restart production is $104,400 per model. Once production starts the variable cost to make each vehicle is $272.50 per vehicle. The firm’s management is trying to decide if the firm should only concentrate on the domestic (Canadian) market (Estimated 745 of vehicles) or pursue export opportunities (Estimated combined 11710 of vehicles) Calculate the total cost per vehicle for the two (2) options. Which of the two (2) options do you recommend? Why?

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jeff jeffy answered 1 year ago

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