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Trimble Company sells a electronic toy for $40. The variable cost is $24 per unit and the fixed cost is $32,000 per year. Management is

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Trimble Company sells a electronic toy for $40. The variable cost is $24 per unit and the fixed cost is $32,000 per year. Management is considering the following changes: Lease a new packaging machine for $4,000 per year, which will reduce variable cost by $1 per unit. Increase selling price 10 percent to counteract an expected 25 percent increase in fixed cost. Reduce fixed cost by 25 percent by moving to a lower rent location. This fixed cost by would have the effect of increasing variable costs by 10 percent. Trimble Company sells a electronic toy for $40. The variable cost is $24 per unit and the fixed cost is $32,000 per year. Management is considering the following changes: Lease a new packaging machine for $4,000 per year, which will reduce variable cost by $1 per unit. Increase selling price 10 percent to counteract an expected 25 percent increase in fixed cost. Reduce fixed cost by 25 percent by moving to a lower rent location. This fixed cost by would have the effect of increasing variable costs by 10 percent

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