In this discussion board assignment, we focus on two student learning outcomes for our class:
During the last two years, a small manufacturing business has suffered erratic sales due to the ongoing COVID pandemic and supply chain issues. As a result, the business is facing financial difficulties. The contribution format income statement for the month ended November 30, 2021 is:
|Sales (19,500 units x $30 per unit)||$585,000|
|Net Operating Loss||$(4,500)|
The CEO of the business learned automating the manufacturing process could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $72,000 each month. The CEO ask you, as a managerial accountant, if you would recommend that the company automate its operations.
In order to respond to the CEO’s question, compute:
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