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n200080 [17]
2 years ago
3

Burns Industries currently manufactures and sells 20,000 power saws per month, although it has the capacity to produce 35,000 un

its per month. At the 20,000-unit-per-month level of production, the per-unit cost is $65, consisting of $40 in variable costs and $25 in fixed costs. Burns sells its saws to retail stores for $80 each. Allen Distributors has offered to purchase 5,000 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs. True or false?
Business
1 answer:
Shalnov [3]2 years ago
5 0

Answer:

True.

Explanation:

Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs is a true statement.

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