Question
b) Your company is considering adding a new product line. The new equipment cost is $360,000 per year with a salvage value of $40,000 at
b) Your company is considering adding a new product line. The new equipment cost is $360,000 per year with a salvage value of $40,000 at the end of year 5. The variable cost per unit of the new product line will be $14.55 and the overhead cost per year to be $48,000. If the company uses a 5-year planning horizon and the price of the product is $49.99, how many units are needed to break even? No interest = 0
b) Your company is considering adding a new product line. The new equipment cost is $360,000 per year with a salvage value of $40,000 at the end of year 5. The variable cost per unit of the new product line will be $14.55 and the overhead cost per year to be $48,000. If the company uses a 5-year planning horizon and the price of the product is $49.99, how many units are needed to break even? No interest = 0
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
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