Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zakir steel sells their product 1000 units for $100,000. Their variable cost 5 points for the 1000 units is $30,000. And a fixed cost of
Zakir steel sells their product 1000 units for $100,000. Their variable cost 5 points for the 1000 units is $30,000. And a fixed cost of $30,000. Company decides to implement the following policy: 1) Selling price will be reduced to $80/unit. 2) A new manager will be hired with a salary of $5,000. 3) Expected increase in sales 1200 units? Should the company implement this policy? Your answer Zakir steel sells their product 1000 units for $100,000. Their variable cost 5 points for the 1000 units is $30,000. And a fixed cost of $30,000. Company decides to implement the following policy. 1) Company decides to use a material which will increase the cost of materials an additional $5/ unit. 2) Due to this the sale is expected to increase to 1300 units. 3) Company decides to take a smaller factory, as a result rent will be decrease by $5000. Should the Company implement this policy? Your answer V JA
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started