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Question # 1- Tetrangle Manufacturing has fixed costs of $ 2,160 per day. The firm manufactures bicycle component upgrade kits. The kits have a short-run average variable cost of $ 48 and are sold for $ 66 each.
What is the breakeven level of daily output for the firm?
What is the degree of operating leverage when the daily output is Q = 170?
Question # 5- As an employer wants to reduce the production cost during the economic recession, he / she could choose to( 1) lay off some workers without changing wages or( 2) keep all workers but cut wages for all. Which method would you choose? Why?
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BUSI 620 Week 4 Questions for Critical Thinking 4( SOLUTIONS)
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Question # 1- Tetrangle Manufacturing has fixed costs of $ 2,160 per day. The firm manufactures bicycle component upgrade kits. The kits have a short-run average variable cost of $ 48 and are sold for $ 66 each.
What is the breakeven level of daily output for the firm?
What is the degree of operating leverage when the daily output is Q = 170?
Question # 5- As an employer wants to reduce the production cost during the economic recession, he / she could choose to( 1) lay off some workers without changing wages or( 2) keep all workers but cut wages for all. Which method would you choose? Why?
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BUSI 620 Week 4 Questions for Critical Thinking 4( SOLUTIONS)