Business, 23.12.2019 19:31 howardc1433
Vandelay industries manufactures a range of latex products. vandelay recently purchased new equipment to manufacture latex gloves for the medical community. the new machinery leases for $70,000 annually and can produce 10,000 pairs of gloves each day. the raw latex material for each pair of gloves costs $.03 and vandelay sells the gloves at a wholesale price of $.10 a pair. currently, sales are 2,500,000 annually. what is the profit on the gloves if the machinery lease is the only fixed cost considered?
a. $250,000
b. $175,000
c. $105,000
d. $75,000
Answers: 2
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Vandelay industries manufactures a range of latex products. vandelay recently purchased new equipmen...
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