Question
Tactics Ltd is deciding between two cost structures: Labour intensive Capital intensive Variable cost per unit 60 45 Annual fixed costs 250,000 400,000 Tactics Ltd's
Tactics Ltd is deciding between two cost structures:
Labour intensive Capital intensive
Variable cost per unit 60 45
Annual fixed costs 250,000 400,000
Tactics Ltd's selling price for its product is $120 per unit.
Required:
What sales volume will Tactics Ltd's management be indifferent as to the alternative cost structures? (4 marks)
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Essentials Of Accounting For Governmental And Not-for-Profit Organizations
Authors: Paul Copley
14th Edition
1260570177, 978-1260570175
