Question

Dale Ltd. has decided to install a new machine that will help to produce goods faster and with less probability of rejections. The cost of procuring the new machine is $10,000. Training laborers for handling the machine would cost another $2,000; but the long-term benefit this plan can provide is that the product would subsequently cost $1 less. How will Dale Ltd. analyze the profitability of the decision?
A. using marginal revenue analysis
B. using average revenue analysis
C. using cost benefit analysis
D. using time series analysis

Answer 1

The answer is c
Hope I help