Question
close brickett company makes a product which has a variable production cost of $8 and a variable sales cost of $2 per unit. fixed costs
close brickett company makes a product which has a variable production cost of $8 and a variable sales cost of $2 per unit. fixed costs are $40000 per annum, the sales price per unit is $18 and the current volume of output and sales is 6000 units. the company is considering whether to have improved machine for production. annual hire cost would be $10000 and it is expected that the variable cost of production would fall to $6 per unit. determine the number of units that must be produced and sold to achieve the same profit as is currently earned if the machine is hired. and calculate the annual profit with the machine if output and sales remain at 6000 units per annum. (10marks)
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