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mariarad [96]
3 years ago
10

Kendra’s Quilts makes custom baby quilts embroidered with the baby’s name and date of birth. The company is considering the purc

hase of a new embroidery machine that costs $75,000. The increased efficiency of the new machine would allow the company to increase revenue by 50%, from $250,000 to $375,000 annually. Direct labor costs would increase by $15,000, and fixed costs (not including depreciation on the machine) would increase by $12,500. Factory rent is $12,000 per year. Should the company purchase the machine?
Business
1 answer:
maxonik [38]3 years ago
8 0

Answer:

They should purchase the machine.

Explanation:

Giving the following information:

The company is considering the purchase of a new embroidery machine that costs $75,000. The increased efficiency of the new machine would allow the company to increase revenue by 50%, from $250,000 to $375,000 annually. Direct labor costs would increase by $15,000, and fixed costs (not including depreciation on the machine) would increase by $12,500.

Effect on income= 125,000 - 75,000 - 15,000 - 12,500= $22,500

They should purchase the machine.

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Answer:

Explanation:

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Answer:

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Explanation:

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3 years ago
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Ivanshal [37]

Consumers and business in the market economy seek to earn money so they can buy products so that they don't go out of business.

6 0
3 years ago
Read 2 more answers
What is the reason why people want something that is scarce?
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5 0
3 years ago
At May 1, 2020, Sheridan Company had beginning inventory consisting of 190 units with a unit cost of $7.30. During May, the comp
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Answer:

$6.71 per unit

Explanation:

The computation of average cost method is given below:-

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