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Unique Tables manufactures coffee tables made of recycled timber. Market research has suggested that there will be strong demand for the tables. Due to this, management is debating whether to lease a new turning machine to meet increased production needs. To assist in their decision-making, the management accountant has supplied the following information:
-Refer to the table above. As the level of sales increases above 1,500 units, the level of profit would increase:

Question

Use the information below to answer the following questions.
Unique Tables manufactures coffee tables made of recycled timber. Market research has suggested that there will be strong demand for the tables. Due to this, management is debating whether to lease a new turning machine to meet increased production needs. To assist in their decision-making, the management accountant has supplied the following information: 
-Refer to the table above. As the level of sales increases above 1,500 units, the level of profit would increase:

Quizplus · Accepted Answer

According to the table, the profit per unit with the turning machine is $20, while without the turning machine it is $15. As the level of sales increases above 1,500 units, the additional profit generated per unit with the turning machine is higher than without the turning machine, meaning the level of profit would increase at a faster rate with the turning machine.

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