Problem
Given the following information.
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Machine 1
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Machine 2
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Machine Cost
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$150,000.00
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$350,000.00
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Cost Per Unit
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$75.00
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$20.00
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1. What is the breakeven point in units when deciding which machine to purchase? Round to the nearest whole number.
2. What machine should the company purchase if annual sales are expected to be 3,000 units per year? Machine 1 or Machine 2. Round to the nearest whole number.
3. What machine should the company purchase if annual sales are expected to be 4,000 units per year? Machine 1 or Machine 2 Round to the nearest whole number.