Computing level of product quality


Assignment:

A company wants to buy a new machines. Two machines have been identified that provide the same level of product quality. Machine A is expected to incur a fixed cost of $121050 per year and add a variable cost of $92 per unit. Machine B is expected to incur a fixed cost of $196884 per year and add a variable cost of $61 per unit. The company must select machine A or machine B. What is the quantity for which the total costs for the two machines are equal? The quantity is _________ units per year.

Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Operation Management: Computing level of product quality
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