Question: 5 Kitchen Innovations, inc. is considering introducing a new line of toaster ovens Before proceeding with a more thorough analysis, the company wants to know

5 Kitchen Innovations, inc. is considering introducing a new line of toaster ovens Before proceeding with a more thorough analysis, the company wants to know what the financial break even quantity is for the project. The data they have gathered are as follows: The company believes it will be able to produce and sell 10,000 units per year at a retail price of $100 each Variable costs for the project are $25 per unit Fixed costs have been estimated as $200.000 per year The production equipment needed for the project will cost $400,000, which will be depreciated to cover its 5 year estimated life on a straight line basis . The company tax rate is 27% 1024 8,740 7.617 3,734 10,814 8,684 arch O RI
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