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Special purpose equipment fixed cost- 200,000 per year Variable cost- $15 per unity
General purpose equipment fixed cost 50,000 per year Variable cost $20 per unit
What is the break even quantity between the two options?
For what range of output is the General purpose equipment the low cost option?
At an annual requirement of 40,000 units, what does the company save per year by selecting the low cost option?
* if you can just at least help me find the break even quantity that would be great. Im confused because i know the formula is BEQ-FC/P-VC but im not sure how to go about the problem. Thanks!!!
General purpose equipment fixed cost 50,000 per year Variable cost $20 per unit
What is the break even quantity between the two options?
For what range of output is the General purpose equipment the low cost option?
At an annual requirement of 40,000 units, what does the company save per year by selecting the low cost option?
* if you can just at least help me find the break even quantity that would be great. Im confused because i know the formula is BEQ-FC/P-VC but im not sure how to go about the problem. Thanks!!!
How do i solve the break even quantity? Please help so lost!!?
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