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Latricia

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The Break-even point for Latricia under the smaller facility is 160 and using the larger facility it
is 330 units. Since Latricia can only manufacture 100 units per month under the smaller facility,
it means that she will be unable to breakeven in the first year leading to a loss of $1500.
Therefore, Latricia should choose the larger facility that enables her to break-even her cost at 330
units with the rest of the production generating a profit of $1,820 from the first year of
production.

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The Break-even point for Latricia under the smaller facility is 160 and using the larger facility it is 330 units. Since Latricia can only manufacture 100 units per month under the smaller facility, it means that she will be unable to breakeven in the first year leading to a loss of $1500. Therefore ...
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