Question: please show steps and explain the conclusion clearly please and thank you! Your company has just received a new long-term contract to manufacture a product
please show steps and explain the conclusion clearly please and thank you!
Your company has just received a new long-term contract to manufacture a product and you need to purchase a new machine for your manufacturing facility. You have the cost information about four similar machines as shown below. Variable Cost ($/unit) 73 Machine Fixed Cost (S/year) A 1,370,000 B 1,910,000 C 1,100,000 D 1,510,000 65 82 68 The unit selling price of the product is $159 per unit. Which machine should you purchase if the annual contract is: [a] 29,000 units? [b] 80,000 units? (c) 140,000 units? You must show your calculation steps and explain your conclusion clearly
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