A specialist graphics company is investing in a new machine which enables it to make high quality...

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A specialistgraphics company is investing in a new machine which enables it tomake high quality prints for its clients. Demand for these printsis forecast to be around 50,000 units in year 1 and 80,000 units inyear 2. The maximum capacity of each machine the company will buyto process these prints is 60,000 units per year. They have a fixedcost of RM40,000 per year and a variable processing cost of RM0.50per unit. The company believe they will be able to charge RM2 perunit for producing the prints.
Calculate the total cost for year 1.
What is the total profit for year 1?
Calculate the total cost for year 2.
What is the total profit for year 2?

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4.3 Ratings (875 Votes)

fixed cost RM40000 per year variable cost per unit RM050 selling price per unit RM2 hence contribution per unit selling price per unit variable cost per unit 2 050 RM150 ahere See Answer

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