Cranberry company of the previous problem

Reference no: EM131011177

Refer to the Cranberry company of the previous problem:

a. Suppose automated equipment is added that increases fixed costs by $20,000 per month. How much will total variable cost have to decrease to keep the breakeven point the same?

b. Calculate the DOL at the same output levels used in part (e) of the previous problem.

c. Comment on the differences in DOL with and without the additional equipment.

Problems 12-15 refer to Burl Wood Products (BWP), a manufacturer of high-quality furniture.

Reference no: EM131011177

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