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Mathematics, 23.11.2021 04:50 ritasolomon85

Andy Mendoza believes that the demand for his dolls will not exceed the break-even point. He believes he can reduce his initial investment by purchasing used sewing machines and few machines. This will reduce his initial investment from $25,000 to $17,000. However, it will also require the employees to work more slowly and perform more operations by hand, thus increasing variable costs from $10 to $14 per doll. With these changes, what will his break-even point be? Show your calculations Should he invest in the used machines? Why or why not?

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Andy Mendoza believes that the demand for his dolls will not exceed the break-even point. He believe...
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