Question: Refer to the same information given in the first question and now assume that the company have an option to expand and be able to

Refer to the same information given in the first question and now assume that the company have an option to expand and be able to produce a maximum of 60 bicycles per month. To make this happen, the company would need to invest 72,000 six months before they can start utilising the new capacity. Once they start utilising their new capacity, the monthly fixed costs would go up by 2,000. At the same time, to ensure all the produced bicycles can be sold, the company would need to reduce the selling price to 800 per bicycle. Assuming the cost of producing a bicycle (500) and the capacity utilisation (80%) is the same before and after the increase in capacity, do the necessary calculations to find out how long would it take the company to recover 72,000, counting from the moment the money is invested?

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