Question: Sales (13,100 units $20 per unit) $ 262,000 Variable expenses 131,000 Contribution margin 131,000 Fixed expenses 146,000 Net operating loss $ (15,000) Refer to the
Sales (13,100 units $20 per unit) $ 262,000 Variable expenses 131,000 Contribution margin 131,000 Fixed expenses 146,000 Net operating loss $ (15,000)
Refer to the original data. By automating, the company could reduce variable expenses in half. However, fixed expenses would increase by $52,000 each month.
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