Wardley Corporation sells its product for $40. The variable costs are $18 per unit. Fixed costs...
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Wardley Corporation sells its product for $40. The variable costs are $18 per unit. Fixed costs are $16,000. The company is considering the purchase of an automated machine that will result in a $2 reduction in unit variable costs and an increase of $5,000 in fixed costs. Which of the following is true about the break-even point in units? a) It will remain unchanged. b) It cannot be determined from the information provided. c) It will increase. d) It will decrease. Wardley Corporation sells its product for $40. The variable costs are $18 per unit. Fixed costs are $16,000. The company is considering the purchase of an automated machine that will result in a $2 reduction in unit variable costs and an increase of $5,000 in fixed costs. Which of the following is true about the break-even point in units? a) It will remain unchanged. b) It cannot be determined from the information provided. c) It will increase. d) It will decrease.
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Selling price 40 less Variable cost 18 Contribution per unit 22 Fixed cost C... View the full answer
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
Posted Date:
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