"> (Solution) -BUSI620 Tetrangle Manufacturing has fixed costs of \$2,160 per day. The firm manufactures bicycle component upgrade kits. Paper Detail – Transwriters

### (Solution) -BUSI620 Tetrangle Manufacturing has fixed costs of \$2,160 per day. The firm manufactures bicycle component upgrade kits.

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The Question

BUSI620

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 daily output is Q = 170?

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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##### (Solution) -BUSI620 Tetrangle Manufacturing has fixed costs of \$2,160 per day. The firm manufactures bicycle component upgrade kits..zip

This paper was answered on 10-Jan-2018

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