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A firm currently produces exercise bikes at a cost of $200 per unit and sells them for $350 each. Alternatively, the firm could produce treadmills at a cost of $350 per unit and sell them for $500 apiece.
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A firm currently produces exercise bikes at a cost of $200 per unit and sells them for $350 each. Alternatively, the firm could produce

treadmills at a cost of $350 per unit and sell them for $500 apiece. The firm could change productionat any time, anticipating potential
sales of 1,000 exercise bikes or 800 treadmills in the coming year. Which good is the firm likely to produce?

A firm currently produces exercise bikes at a cost of $200 per unit and sells them-example-1
User Barwin
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1 Answer

3 votes

Answer:

Cost per unit = 67585.06/19200 = 3.52

Step-by-step explanation:

User Benjarobin
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3.8k points
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