Variable cost would increase to 60 but sales volume should, Operation Management

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Variable cost would increase to 60 but sales volume should

Audiocables, INC. is currently manufacturing an adapter that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed cost are $14,000. Current sales volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,000. Variable cost would increase to $.60, but sales volume should jump to 50,000 units due ti a higher-quality product. Should audiocables buy the new equipment?

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Operation Management: Variable cost would increase to 60 but sales volume should

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Request for Solution File

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Operation Management: Variable cost would increase to 60 but sales volume should

Reference No:- TGS0567835

Have a Question? (oR Write a Review)

Recent Questions Asked Operation Management

Q : A gas at 30 degrees c and 600 mmhg occupies a volume of 412

Q : If expected sales at a b and c are 20500 per month 22800

Q : Jim enters the town and makes a factory which is employed

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Request for Solution File

Ask an Expert for Answer!!

Operation Management: Variable cost would increase to 60 but sales volume should

Reference No:- TGS0567835

Recent Questions Asked Operation Management

Q : A gas at 30 degrees c and 600 mmhg occupies a volume of 412

Q : If expected sales at a b and c are 20500 per month 22800

Q : Jim enters the town and makes a factory which is employed

Q : What type of information is carried by the data bus the

Q : Variable cost would increase to 60 but sales volume should

Q : Newton exports all their products outside the city and

Q : Calculate net present value npv internal rate of return irr

Q : Determine whether ability or motivation is more important

Q : A container of gas at 760 mmhg and 20 degrees c is heated

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