Question

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?

A. 30,000 units

B. 25,000 units

C. 40,000 units

D. 50,000 units

E. 60,000 units

Answer

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