Question: A company manufactures a product which has a variable cost of 6. The annual fixed costs are 24,000. Leasing a new production machine would increase

A company manufactures a product which has a variable cost of 6. The annual fixed costs are 24,000. Leasing a new production machine would increase fixed costs by 20% and reduce variable costs by 10%. At what level of output would it be worth considering changing to the new machine?

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