Question: Conway is a manager. Conway is tasked to determine whether the company should invest in the machine named Bang. The machine will cost 400,000 and
Conway is a manager. Conway is tasked to determine whether the company should invest in the machine named Bang. The machine will cost 400,000 and will only be used for one year. The new machine would result in variable cost savings of 250,000 for the next year. The company is currently spending 650,000 in variable costs. Current projected sales amount to 1,350,000. Other fixed costs amount to 200,000. Should the company invest in the machine?
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