What is the minimum sales quantity that would justify

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Reference no: EM1390804

Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has two choices: (A) make major modifications at a fixed cost of $26,000, or (B) purchase new equipment at a net fixed cost of $63,000. If the firm chooses to make modifications, variable materials and labor will be $27.0 per board. If it buys new equipment, variable costs are estimated to be $17.5 per board.

What is the minimum sales quantity that would justify the purchase of new equipment?

Reference no: EM1390804

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