The current cost structure for the production department of Performance, Inc., has fixed expenses of $500,000 and variable expenses of $200 per unit.Unit sales volume is 6,000 units.Performance, Inc., can invest in automated production equipment which will increase its fixed expenses to $980,000.What is the new variable expense per unit after automation that will produce the same current operating income on sales volume of 6,000 units?

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The Answer of The current cost structure for the production department of Performance, Inc., has fixed expenses of $500,000 and variable expenses of $200 per unit.Unit sales volume is 6,000 units.Performance, Inc., can invest in automated production equipment which will increase its fixed expenses to $980,000.What is the new variable expense per unit after automation that will produce the same current operating income on sales volume of 6,000 units?

The Current Cost Structure for the Production Department of Performance