New technology would increase fixed cost by $275000 and decrease variable cost by 15%. As a result of these changes, break even point will change from 9000 units to 9500 units. Current sales 9800 units per year and expected to grow by 5% each year for the next five years. Should we make this change?

Answer rating: 100% (QA)

To determine whether the company should make the change in technology that increases fixed costs by ... View the full answer