Robots in manufacturing: deciding when to buy
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Robots, through depreciation, would be included in fixed costs. The cost to run them would be included in overhead. If the sales volume went down, the company would not be able to cover the fixed costs. What should the company have done before buying the robots to prepare a full financial analysis?
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Solution Summary
This solution provides a discussion of a financial analysis of the best time to buy a product, given various financial factors.
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The company should have done the cost volume profit analysis before buying the robots to prepare a full financial analysis. ...
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