h-capacity machine has cash expenses of $10,000 per month, while the alternative has cash expenses of $5,000 per month and depreciation and amortisation expenses of $2,000 per month. under high capacity, the variable costs per unit are $10; and they are $40 for the other alternative. if the company bases its decisions on the accounting operating profit break-even, then what are the de
h-capacity machine has cash expenses of $10,000 per month, while the alternative has cash expenses of $5,000 per month and depreciation and amortisation expenses of $2,000 per month. under high capacity, the variable costs per unit are $10; and they are $40 for the other alternative. if the company bases its decisions on the accounting operating profit break-even, then what are the de
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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bright light auto lamps has found that it is indifferent between purchasing a high-capacity vacuum sealing machine or a lower capacity machine as long as sales are above 200 units per month. the price of each sealed beam light is $50. the high-capacity machine has cash expenses of $10,000 per month, while the alternative has cash expenses of $5,000 per month and depreciation and amortisation expenses of $2,000 per month. under high capacity, the variable costs per unit are $10; and they are $40 for the other alternative. if the company bases its decisions on the accounting operating profit break-even, then what are the depreciation expenses under the high-capacity alternative?
a. $3,000
b. $4,000
c. $9,000
d. none of the above
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