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# How many cords of wood would the owner of Dry Firewood have to split with a new machine to make a profit of \$30,000 Answer

How many cords of wood would the owner of Dry Firewood have to split with a new machine to make a profit of \$30,000 if this hydraulic wood splitter sells for \$50,000? It will cost an additional \$100 per cord to purchase and split wood with this machine. He can sell each cord of split wood for \$125. Show your work.

Ans:

Cost of Hydraulic wood splitter (Fixed Cost – One time purhcase) = \$ 50,000

The owner of Dry Firewood have to split with a new machine to make a profit of \$30,000

Additional \$100 per cord to purchase and split wood with this machine

Variable/Running cost per cord = \$ 100 /cord

Price of each cord of split wood sold at = \$ 125

If the desired nos. of units  = x

=> 125 x – 100 x – 50000 =  30000

=> 25 x =  80000

x = nos. of cords of woods to be split and sold = 3200 units

3200 units of cords of wood would the owner of Dry Firewood have to split with a new machine to make a profit of \$30,000.