Maya Zuck produces diving gear. Last Year, Ms Zuck sold 175,000 diving sets at $100. Total costs were $13,500,000 of which $10,500,000 were unit level costs and the remaining costs of were thought to be fixed. Ms Zuck is considering the purchase of an automated manufacturing system. The salesman selling the system tells her that her cost are not truly fixed. Below are the current costs and related activities as well as the changes resulting from the new system. Additionally, the new system will reduce unit level costs by 10%. Use a computer spreadsheet to model the system.
Using the spread sheet, determine profit if the same number of units are sold at the same price

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The Answer of Maya Zuck produces diving gear. Last Year, Ms Zuck sold 175,000 diving sets at $100. Total costs were $13,500,000 of which $10,500,000 were unit level costs and the remaining costs of were thought to be fixed. Ms Zuck is considering the purchase of an automated manufacturing system. The salesman selling the system tells her that her cost are not truly fixed. Below are the current costs and related activities as well as the changes resulting from the new system. Additionally, the new system will reduce unit level costs by 10%. Use a computer spreadsheet to model the system.
Using the spread sheet, determine profit if the same number of units are sold at the same price

Maya Zuck Produces Diving Gear