Homework Answers
15. Machine A :
Sales : 75,000 units * 25
= 1875000
Sales : $1875000
Fixed costs ; $ 1,00,000
variable costs : 114,3750
EBIT (A) = $631250
Similarly for machine B ;
Sales : $1875,000
Fixed costs : $4,00,000
Varaibel costs : $675,000
So, EBIT (B) = $8,00,000
EBIT(B ) - EBIT(A)
= $168750
So, the correct option is option D.
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