Question:Although it will fulfill her lifelong dream, Patricia is not confident that demand for her Tiny Trisha doll will exceed the breakeven point computed in Problem 6-5. If she chooses a less appealing site and does more of the work by hand, her initial investment cost can be reduced to $5000, but her per-unit cost of manufacture will rise to $15 per doll.- What is the break even point for this new process?- Compare this process to the process proposed in the previous problem. For what volume of demand should Patricia choose this process?Patricia Zell, a dollmaker from Olney, Maryland, is interested in the mass marketing andproduction of a ceramic doll of her own design called Tiny Trisha. The initial investmentrequired for plant and equipment is estimated at $25,000. Labor and material costs areapproximately $10 per doll. If the dolls can be sold for $50 each, what volume ofdemand is necessary for the Tiny Trisha doll to break even?
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