Acme Inc manufactures a fax machine with the following costs and revenue budget. New Technology is available so that the variable cots at the budget sales level could be reduced to $42,000. The additional investment could increase total fixed cost to $65,020. In considering this operating leveraging decision, what is the indifference sales level above which this investment should be made and below which this investment should not be made.

revenue 140,000

variable cost 81,200

Fix cost 41,500

a. 60,980 b. 72,244 c. 84,000 d. 54,605 e. none of the above

Answer rating: 100% (QA)

To find the indifference sales level we need to compare the costs and revenues with and without t... View the full answer