What sales volume is needed to justify the investment

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Reference no: EM131919648

Question: Party Pools LLC assembles pool pumps for residential in-ground swimming pools. Fixed costs to produce model P07 pump are $75,000 per year. Variable costs per pump for this model are $40. The company is evaluating a new process that would increase fixed costs to $150,000 per year but will reduce variable costs to $15/pump. What sales volume is needed to justify this investment?

Reference no: EM131919648

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