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BilliePaul95
BilliePaul95
09.04.2021 • 
Business

Angelique runs a business making cell-phone cases. She started her business making custom 3-D printed cases. To make those she must pay a fixed cost of $ 48 to use the library's 3-D printer along with a per-unit cost of $6 for the plastic and the time to design and print the cases. Angelique is considering purchasing a plastic mold to make the cases instead. The mold would cost $ 88 up front, but once she has purchased it her per-unit cost drops to $4. Assume that the mold will last for one month. 1. What is the smallest number of cell-phone cases Angelique needs to produce to make purchasing the plastic mold worthwhile?
If Angelique expects to produce 22 cell-phone cases over the next month, which production method should she use?
A. 3-D printing
B. plastic mold
C. Neither; she should shut down production.
D. She is indifferent; the average cost is the same.

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