Gabriel manufacturing must implement a manufacturing


Gabriel Manufacturing must implement a manufacturing process that reduces the amount of toxic by-products. Two processes have been identified that provide the same level of toxic by-product reduction. Usage is currently750 units. The first process would incur $275,000 of fixed costs and $625 per unit of variable costs. The second process has fixed costs of $135,000 and variable costs of $950 per unit. What is the total cost of the first process?

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Operation Management: Gabriel manufacturing must implement a manufacturing
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