Use the information below to answer the following questions.
Unique Tables manufacture 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. To assist in their decisionmaking, the management accountant has supplied the following information: $\begin{array}{lll}&\text { Without }&\text {With }\&\text { turning machine }&\text { turning machine }\\hline
\text { Expected level of sales } & 1,500 \text { units } & 1,500 \text { units } \
\text { Sales price per unit } & \$ 150 & \$ 150 \
\text { Variable costs per unit } & \$ 120 & \$ 110 \
\text { Fixed costs } & \$ 7500 & \$ 15,000
\end{array}$
-Refer to the table above. As the level of sales increases above 1,500 units, the level of profit would increase:

Question

Quizplus · Accepted Answer

With the turning machine, the variable cost per unit is lower ($110 vs. $120), meaning for each additional unit sold above 1,500, the company retains more profit per unit compared to without the machine, despite the higher fixed costs.

Use the Information Below to Answer the Following Questions -Refer to the Table Above