At what point will the company be indifferent

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Reference no: EM131930428

Question: For a table manufacturing company, selling price for the table is 200 per unit, Variable cost is $25 per unit, rent is $3000 per month and insurance is $2000 per month. Company wants to expand its business and improve table quality, it wants to increase the selling price for the table to $300 per unit, Variable cost to $50 per unit, bigger area will have rent $5000 per month and insurance is $3000 per month. At what point will the company be indifferent between the current mode of operation and the new operation.

Reference no: EM131930428

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