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Business, 15.11.2019 22:31 golderhadashaowtatz

Kendra’s quilts makes custom baby quilts embroidered with the baby’s name and date of birth. 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. factory rent is $12,000 per year. should the company purchase the machine?

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Kendra’s quilts makes custom baby quilts embroidered with the baby’s name and date of birth. the com...
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