How many bar stools would simp co need to match the increase

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Reference no: EM133412116

How many bar stools would Simp co need to match the increase in profits if it did not switch to centralized purchasing?

The current discount structure for bar stools from Savage Industries is as follows:

Material cost of inputs at a quantity between 350,000 and below is $8.00 per unit.
Material costs of inputs at a quantity between 350,001 and 700,000 are 5% less per unit.
Material costs of inputs at a quantity greater than 700,000 are 10% less per unit.
Production labor cost: $4.00 per unit
Machinery cost: $4.00 per unit
Corporate overhead: $2.00 per unit

Reference no: EM133412116

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