Question
Stepsteven has found that it is indifferent between purchasing a high capacity vacuum component assembly machine or a lower capacity machine as long as sales
Stepsteven has found that it is indifferent between purchasing a high capacity vacuum component assembly machine or a lower capacity machine as long as sales are $1, 900 units per month. The price of each calculator is $70 the high-capacity machine has cash expenses of $100,000 per month and depreciation and amortization expenses of $30,000 per month. while alternative has cash expenses of $5000 per month. Under the low capacity alternative variable costs per unit are $60. If the firm bases its decisions on the accounting operations profit break-even then what is the variable cost per unit under the high capacity alternative.
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