paper DexterMasters
Assume that the company has no debt. Regardless of the alternative selected, market conditions will require the selling price of the product to be $3.45 per unit. The details for each alternative are given in the table.
|
|
Alternative 1 |
Alternative 2 |
|
Variable costs |
$2.20 |
$2.70 |
|
Fixed costs |
$80,000 |
$30,000 |
|
Total assets |
$350,000 |
$350,000 |