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Question 6 APC Company produced a single product, which sells for $25.00 per unit. Because of a decline in the supply of the expert workers
Question 6 APC Company produced a single product, which sells for $25.00 per unit. Because of a decline in the supply of the expert workers required to produce this commodity, it is proposed to reduce production. The company will incur costs of $10,000 per annum whether the commodity is produced or not, plus an additional cost of $15.00 for each unit of production. If the company is to be able to continue to pay its costs, to what minimum level in units) can production be reduced: a. If the selling price remains unchanged, and (3 marks) b. If the selling price can be immediately increased to $31 per unit? (3 marks) Show all the workings in your answers
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