Two companies, Perfect Lawn Co. and Ideal Grass Co., are competingin the manufacture and sale of lawn mowers. Perfect Lawn Co. has s somewhat older plant and requires a variable cost of $150 per lawn mowers; its fixed costs are $200,000 per year. Ideal Grass Co. is more automated and thus has lower variable cost of $100 per lawn mowers; its fixed cost is $400,000 per year. Since the two companies are close competitors, they both sell their product at $250 per unit.a.???hat is the break-even quantity for each companies?b.???f sales of each company were to reach 4,500 units per year, which company would be more profitable? Why?BusinessEconomicsEconometricsECON 3105
