Question
Management at Pick-a-Pair are considering the purchase of a new machine that will lower variable costs by R8 per unit. However, this will add to
Management at Pick-a-Pair are considering the purchase of a new machine that will lower variable costs by R8 per unit. However, this will add to the fixed costs. How large can the addition to fixed costs be to keep the break-even point constant, at 27000 units (bearing in mind that the current contribution is R21 per unit)?
| A. | R783 000 | |
| B. | R216 000 | |
| C. | R351 000 | |
| D. | R567 000 |
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
