Question
Please do it in excel and also show all the formulas..... Jeren Company is considering replacing its existing cutting machine with a new machine that
Please do it in excel and also show all the formulas.....
Jeren Company is considering replacing its existing cutting machine with a new machine that will help reduce its defect rate. Relevant information for the two machines includes the following:
Cost Item | Existing Machine | New Machine |
Monthly fixed costs | $32,000 | $40,000 |
Variable cost per unit | $44 | $40 |
Sales price per unit | $55 | $55 |
Required
Determine the sales level, in number of units, at which the costs are the same for both machines.
Determine the sales level in dollars at which the use of the new machine results in a 10% profit on sales (profit/sales) ratio
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