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jek_recluse [69]
4 years ago
12

efer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant wou

ld slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company’s new CM ratio and new break-even point in balls?
Business
1 answer:
blsea [12.9K]4 years ago
5 0

Answer: CM ratio will be 0.6

Explanation: The New plant will reduce variable expenses by 40%, definitely its a good one which would the company 60% on other expenses which can be easily broken down to different thresholds to get proper picture how the break even point will be by the time the plant is built.

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