A company is estimating the benefits of investing in a new machine to improve its output. Its current variable costs are £12 per unit and current fixed costs are £48,000. If the new machine increases fixed costs by 20% but reduces variable costs by 10%, at what level of production should they change to the new method?
A) 4,000 units
B) 4,363 units
C) 8,000 units
D) 2,000 units

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The Answer of A company is estimating the benefits of investing in a new machine to improve its output. Its current variable costs are £12 per unit and current fixed costs are £48,000. If the new machine increases fixed costs by 20% but reduces variable costs by 10%, at what level of production should they change to the new method?
A) 4,000 units
B) 4,363 units
C) 8,000 units
D) 2,000 units

A Company Is Estimating the Benefits of Investing in a New