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Question 12 3 Points A manufacturing company leases for $100,000 per year building that houses manufacturing facilities. In addition, the machinery in the building is
Question 12 3 Points A manufacturing company leases for $100,000 per year building that houses manufacturing facilities. In addition, the machinery in the building is being paid for installments of $20,000 per year. Each unit of the product produced costs $15 and $10 in materials, can be sold for $40. If the selling price is reduced to $35 per unit, how many must be sold in order to earn a profit of $60,000? A 10,000 B 12,000 C 5,143 (D) 9,000 Question 13 3 Points The old filter system of a water station incurs a fixed filter expense of $150 per month. They also have a variable filter expense that is based on the number of refilling services they acquire that is $4 per service. In a new filter system, the fixed filter expense will lessen by 45% and the variable filter expense remains the same. The new filter system will have a one time contract cost of $1800. They need to examine the two alternatives for a span of 1 year in which they forecast that the number of services they can attain for the next 12 months is 1560 customers. What should be the decision of the water station? A Purchase the new system since it is cheaper by $990. B Do not purchase the new system since it is cheaper by $990. Don not purchase the new system since it is cheaper by $1200. D Cannot be determined
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