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Rattati ehf. produces and sells 400,000 kg. of dog food. The product's profit margin is ISK 150/kg, its selling price is ISK 500/kg. Fixed costs
Rattati ehf. produces and sells 400,000 kg. of dog food. The product's profit margin is ISK 150/kg, its selling price is ISK 500/kg. Fixed costs in the operation are ISK 45,000,000. Rattatti ehf. has invested in new production technology that will reduce the variable cost of the product by ISK 50/kg. The investment will, however, mean that fixed costs will increase and will be a total of ISK 50,000,000. What is the profit in the operation of Rattata ehf. after the investment
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