Fixed costs $200,000 20,000 units/year produced Selling price $30 Variable cost/unit $10

1. Should I invest in a machine that will increase fixed operating costs by $20,000 to decrease VC/unit by $1 and increase sales by 1,000 units at $30 selling price?

2. What is the current operating breakeven? What is the proposed operating breakeven? Now Proposed Units Sales $ Sales COGS Gross Profit FC (oper. costs) EBIT

	Now	Proposed
Units
Sales $
Sales
COGS
Gross Profit
FC (oper. costs)
EBIT