A specialistgraphics company is investing in a new machine which enables it tomake high quality prints for its clients. Demand for these printsis forecast to be around 50,000 units in year 1 and 80,000 units inyear 2. The maximum capacity of each machine the company will buyto process these prints is 60,000 units per year. They have a fixedcost of RM40,000 per year and a variable processing cost of RM0.50per unit. The company believe they will be able to charge RM2 perunit for producing the prints.
- Calculate the total cost for year 1.
- What is the total profit for year 1?
- Calculate the total cost for year 2.
- What is the total profit for year 2?
