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Selling price is $80/unit, VC are $60/unit, Fixed costs are $260,000. You are thinking of buying a new machine that costs $60,000 a year for
Selling price is $80/unit, VC are $60/unit, Fixed costs are $260,000. You are thinking of buying a new machine that costs $60,000 a year for 5 years, but it would decrease your VC/unit by 10%. What happens to your breakeven point if you buy the new machine ?
A) Decreases (goes down)
B) Remains the same
C) Increases (goes up)
D) Not enough information to answer the question
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