Purchase of one of two types of laser trimming devices

Assignment Help Business Economics

Reference no: EM13998573

An electronics manufacturer is considering the purchase of one of two types of laser trimming devices. The sales forecast indicated that at least 8,000 units will be sold per year. Device A will increase the annual fixed cost of the plant by $20,000 and will reduce variable cost by $5.60 per unit. Device B will increase the annual fixed cost by $5,000 and will reduce variable cost by $3.60 per unit. If variable costs are now $20 per unit produced, which device should be purchased?

Reference no: EM13998573

Questions Cloud

Federal government has intruded upon the power of the states : Some say that there are powers that the Constitution reserves to the States that the Federal Government has intruded upon since the founding of the country. Discuss and provide one example where it could be argued that the Federal Government has intr..

Differentiate between how hospitals and physicians : Differentiate between how hospitals and physicians are reimbursed. Include government entitlements such as Medicare and Medicaid.

What is an example of a trade : Suppose Japan can produce 2 million trucks per day, or it could produce up to 3 million cars. ON the other hand, Germany can produce 4 million trucks per day, or it could produce up to 5 million cars. What is an example of a trade that could take pla..

What is your total variable cost per acre : Assume you are a wheat farmer in North Central Kansas, you have fixed costs per acre of $84, variable cost per bushel is $3.64, and you produce 56 bushels per acre. What is your total variable cost per acre? What is your total cost per acre?

Purchase of one of two types of laser trimming devices : An electronics manufacturer is considering the purchase of one of two types of laser trimming devices. The sales forecast indicated that at least 8,000 units will be sold per year. Device A will increase the annual fixed cost of the plant by $20,000 ..

Under the topic of health as an input to production : Under the topic of health as an input to production,

The cost of producing a given level of output is minimized : The cost of producing a given level of output is minimized

Find the payout period for the sprinkler system : An office building and its equipment are insured to $7,100,000. The present annual insurance premium is $0.85 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $180,000. Find the rat..

Should leave employment unchanged : Assume that for the last worker hired MPL=4, MR=2, and W=4, and if one more worker is hired MPL=3, MR=2, and W=4. Given this information, the firm- should leave employment unchanged, should increase employment.

User Account

All Pages