Question: Ace manufacturer is considering purchasing a semi - automatic lathe to produce an item they wish to sell. The fixed cost to purchase the lathe
Ace manufacturer is considering purchasing a semiautomatic lathe to produce an item they wish to sell. The fixed cost to purchase the lathe is $ and each unit produced by the lathe would have a variable cost of $ Ace believes that the selling price for each unit would be
Questions:
Based on the data given, how many units would Ace need to sell in order to breakeven? points
How many units would Ace need to produce in order to make a profit of $ per unit? points
How many units would Ace need to produce in order to make a total profit of $ points
If Ace can buy the component from a subcontractor for $ unit, how many units would they require before it becomes more profitable to buy the semiautomatic lathe? points
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