Question: A special water bottle producing machine is needed. The initial cost is SR 70,000. It can be used to produce 36500 bottles per year. The

A special water bottle producing machine is

A special water bottle producing machine is needed. The initial cost is SR 70,000. It can be used to produce 36500 bottles per year. The machine can be used for four years with zero salvage value. The annual fixed cost is SA40,000. The required rate of return s 15.5%. The variable cost is SR SR1.5 per bottle. The break- even value for the bottle's unit price is approximately equal to SR3.27 SR3.92 SR2.82 None of the other answers 17

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