Machine 1 is being challenged by Machine 2,which has greater capacity,lower variable costs,and higher fixed costs,but Machine 2 requires a much larger investment.Should the organization buy Machine 1 or Machine 2? The sales department states that demand is larger than supply and that,if they matched demand,they could deliver 6,000 units per quarter.The organization uses a 3-month time period (T = 3) for its breakeven analysis.It could also be T = 1 quarter.

Question

Quizplus · Accepted Answer

The Answer of Machine 1 is being challenged by Machine 2,which has greater capacity,lower variable costs,and higher fixed costs,but Machine 2 requires a much larger investment.Should the organization buy Machine 1 or Machine 2? The sales department states that demand is larger than supply and that,if they matched demand,they could deliver 6,000 units per quarter.The organization uses a 3-month time period (T = 3) for its breakeven analysis.It could also be T = 1 quarter.

Machine 1 Is Being Challenged by Machine 2,which Has Greater