SOLVE FOR F....Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $95,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $45,000 per month, but a variable cost of $2.00. Selling price is $2.80 per bag. d) What is the break-even point in units with the Hi-Speed shredder? e) What is the break-even point in dollars with the Hi-Speed shredder? f) What is the monthly profit if the company selects the Hi-Speed shredder and sells 70,000 bags per month?

SOLVE FOR F....Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi-Speed will have a fixed cost of $95,000 per month and a variable cost of $1.20 per bag. Clunker has a fixed cost of only $45,000 per month, but a variable cost of $2.00. Selling price is $2.80 per bag. d) What is the break-even point in units with the Hi-Speed shredder? e) What is the break-even point in dollars with the Hi-Speed shredder? f) What is the monthly profit if the company selects the Hi-Speed shredder and sells 70,000 bags per month?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6MC: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling...

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