Suppose DynaMark sells a single product at a price of $54 per unit. On the average,...
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Suppose DynaMark sells a single product at a price of $54 per unit. On the average, DynaMark sells 1,000 units of the product per month. The current production process involves variable costs at $14 per unit and fixed costs total $25,000. The president of the company is considering updating the production process, which will reduce variable costs per unit to $12 but will increase total fixed costs to $29,400. Given this information and assume that the selling price remains at $54 per unit and the estimated sales remains to be 1,000 units, calculate the followling for the company. (1) The company's profit without changing the producion process is $ (2) The company's profit if it were to update the production process is $ (3) Based on the change in profit, the company not") update its production process. (answer "should" or "should Suppose DynaMark sells a single product at a price of $54 per unit. On the average, DynaMark sells 1,000 units of the product per month. The current production process involves variable costs at $14 per unit and fixed costs total $25,000. The president of the company is considering updating the production process, which will reduce variable costs per unit to $12 but will increase total fixed costs to $29,400. Given this information and assume that the selling price remains at $54 per unit and the estimated sales remains to be 1,000 units, calculate the followling for the company. (1) The company's profit without changing the producion process is $ (2) The company's profit if it were to update the production process is $ (3) Based on the change in profit, the company not") update its production process. (answer "should" or "should
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Answer rating: 100% (QA)
To calculate the companys profit we need to consider the following information Current production pr... View the full answer
Related Book For
Management Accounting
ISBN: 9780077185534
6th Edition
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
Posted Date:
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