North Dakota Knapsacks, Inc. makes high quality backpacks. Each pack can be sold to an outdoor gear

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North Dakota Knapsacks, Inc. makes high quality backpacks. Each pack can be sold to an outdoor gear distributor for $43. The variable cost of producing each pack is $29. The company's cash-based fixed costs (such as managers' salaries, building rent, some components of utilities and insurance) total $2,450,000 per year. The machinery used in the manufacturing originally cost the company $10,850,000, and was expected to have a 7-year useful life. North Dakota's managers feel that the weighted average cost of capital for the company's typical investment projects is 9.3% per year. What number of backpacks sold constitutes the company's annual Financial Break-Even Point?

A.64,271.39
B.330,538.57
C.19,461.43
D.312,285.71
E.532,442.96

Posted Date: May 18, 2024 02:08 PM

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North Dakota Knapsacks, Inc. makes high quality backpacks. Each pack can be sold to an outdoor gear

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