Your insurance firm processes claims through its two facilities: facility A and facility B. Each month, facility A handles 6,000 claims and incurs in $50,000 fixed costs and $54,000 in variable costs. Each month, facility B handles 5,000 and incurs $174,000 in fixed costs and $60,000 in variable costs. IF you anticipate a decrease in the number of claims, where will you lay off workers?
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Home » Business » Your insurance firm processes claims through its two facilities: facility A and facility B. Each month, facility A handles 6,000 claims and incurs in $50,000 fixed costs and $54,000 in variable costs.