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Should the company produce and sell the additional bulbs

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Question - A Light Bulbs company anticipates selling 3,000 light bulbs this year at a price of R15 per bulb. It costs the company R10 in variable costs to produce each light bulb, and the fixed costs for the company are R10,000. The company has an opportunity to sell an additional 1,000 bulbs next year at the same price and variable cost, but by doing so the company will incur an additional fixed cost of R4,000. Should the company produce and sell the additional bulbs?

Reference no: EM133103536

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