Question
Help me answer this. 1. Company ABC sell widgets for 30 a unit. Their fixed cost is 100,000 and their variable cost is 10 per
Help me answer this.
1. Company ABC sell widgets for 30 a unit. Their fixed cost is 100,000 and their variable cost is 10 per unit. What is the break-even point using the basic algebraic approach? Compute for the total sales (total revenues at breakeven) and total cost at breakeven. If the company sells 7000 units, how much will be their profit?
2. Company DEF has a choice of two machines to purchase. They both make the same product which sells for 10.Machine A has FC of 5,000 and a per unit cost of 5. Machine B has FC of 15,000 and a per unit cost of 1. Under what conditions would you select Machine A?
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