A poultry farmer with an MBA is debating whether to acquire Rhode Island Reds or Buff Orpingtons to lay the free range eggs he wants to sell.The fixed costs for the Buffs would be $7500 and the variable costs per egg would be a dime per egg.The Reds would have a fixed cost of $6000 and a variable cost of fifteen cents.At what level of egg production would our well-educated poultry farmer be indifferent between Rhode Island Reds and Buff Orpingtons?
A) 20,000 eggs
B) 30,000 eggs
C) 50,000 eggs
D) 60,000 eggs

Question

Quizplus · Accepted Answer

The Answer of A poultry farmer with an MBA is debating whether to acquire Rhode Island Reds or Buff Orpingtons to lay the free range eggs he wants to sell.The fixed costs for the Buffs would be $7500 and the variable costs per egg would be a dime per egg.The Reds would have a fixed cost of $6000 and a variable cost of fifteen cents.At what level of egg production would our well-educated poultry farmer be indifferent between Rhode Island Reds and Buff Orpingtons?
A) 20,000 eggs
B) 30,000 eggs
C) 50,000 eggs
D) 60,000 eggs

A Poultry Farmer with an MBA Is Debating Whether to Acquire