Q 16

A company is estimating the benefits of investing in a new machine to improve its output. Its current variable costs are 12 per unit and current fixed costs are 48,000. If the new machine increases fixed costs by 20% but reduces variable costs by 10%, at what level of production should they change to the new method?

a)	8,000 units

b)	2,000 units

c)	4,363 units

d)	4,000 units