Question
Can someone calculate the break even analysis, thanks, thanks Break-even analysis. Binders-For-School, Inc., is in the process of determining whether to purchase a high-capacity machine
Can someone calculate the break even analysis, thanks, thanks
Break-even analysis. Binders-For-School, Inc., is in the process of determining whether to purchase a high-capacity machine to make textbooks for the upcoming school year. The high-capacity machine will generate fixed costs of $10,000 per year versus the $2,000 fixed costs of using a low-capacity machine. The variable costs per unit when using the high-capacity machine will be $30. The firm will charge $60 for each textbook and has determined that the high-capacity machine will maximize pretax operating cash flow if sales are greater than 800 books. What is the variable cost per unit under the low-capacity machine scenario?
| $60 |
| $80 |
| $40 |
| $20 |
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