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Selling Price is $5/unit, VC are $3.50/unit, fixed costs are $300,000, current net income is $120,00. We are thinking about buying a new machine which
Selling Price is $5/unit, VC are $3.50/unit, fixed costs are $300,000, current net income is $120,00. We are thinking about buying a new machine which will cost us $80,000 each year for five years but it will save us 16% per unit off of our VC. How many units will we need to sell if we leave the selling price the same and we want net income to be $155,600 ?
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