Pacific Inc. is considering adding a new production line. The additional fixed cost investment is $82,900...
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Pacific Inc. is considering adding a new production line. The additional fixed cost investment is $82,900 and the variable cost is $31.50 per unit. The expected life is 10 years and MARR= 10%. If the product can be sold for $36.00/unit. What is the annual fixed cost? Ans. $xx.xxx How many units must be sold per year to break-even? X,XXX Ans. Pacific Inc. is considering adding a new production line. The additional fixed cost investment is $82,900 and the variable cost is $31.50 per unit. The expected life is 10 years and MARR= 10%. If the product can be sold for $36.00/unit. What is the annual fixed cost? Ans. $xx.xxx How many units must be sold per year to break-even? X,XXX Ans.
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To calculate the annual fixed cost we can use the concept of annual equivalent cost which is the ann... View the full answer
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
Posted Date:
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