A company purchases LED light bulb manufacturing equipment for $625,000. The manufacturing equipment has a production rate of 2050 light bulbs per shift. The light bulb manufacturing equipment has an expected life of 3 years with a salvage value of $43,750. In addition to the cost of the manufacturing equipment, the company has fixed costs of $110,500 per month. The manufacturing costs of each light bulb is $4.54. The company sells each light bulb for $9.10. MARR is 0.75% per month. How many shifts per month must the company operate its light bulb manufacturing equipment in order to achieve a monthly profit of $205,000?

Answer rating: 100% (QA)

Heres how to calculate the number of shifts per month required to achieve a monthly profit of 2... View the full answer