Instructions
A company is considering getting a product
It has three alternatives
For the first alternative product fixed cost
Machine 20,000 and variable cost per unit 10
Dinars for the second alternative to obtain the product
The fixed cost to him is 40,000 dinars and the cost
The variable for a single unit is 8 dinars for either
option
The third to get the product is to buy it directly
Of the returnees, and here the fixed cost is zero either
The variable cost is 50 dinars per unit
If you know that the volume of demand for this product
is
1000 units Wi-Fi alternatives the company recommends to
adopt
To get the product
Tc = FC + (vc * Q)