An industrial dough mixer costs $20000. A bank is willing to lend the needed funds to a
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An industrial dough mixer costs $20000. A bank is willing to lend the needed funds to a bakery at an interest rate of 7%. The mixer depreciates at a rate of 8% per year. A loaf generates revenue of $0.10 each after accounting for the cost of ingredients. What is the minimum number of loaves the new mixer would have to increase output by in order to make its purchase profitable?
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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