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Answer :
Answer:
CSCP Inc.
If the Co. decides to lease the machine and add features to its product, it will increase the monthly profit by $57,000.
Explanation:
a) Data and Calculations:
Normal Production Leasing
Sales volume 1,000 1,000
Sales price $70 $125
Variable costs $26 $15
Fixed costs $22,000 $31,000
Sales Revenue $70,000 $125,000
Variable costs 26,000 15,000
Contribution 44,000 110,000
Fixed costs $22,000 $31,000
Profit $22,000 $79,000
Increase in profit $57,000
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Rewritten by : Jeany
