Question: QUESTION 4 The company KEEP WORKING INC is currently developing a washing machine to add to their product range. The break even analysis shown below

QUESTION 4 The company KEEP WORKING INC is

QUESTION 4 The company KEEP WORKING INC is currently developing a washing machine to add to their product range. The break even analysis shown below has been developed to allow the engineering division to determine the maximum budget that can be spent on development and production investment. The company expects sales volume to be a constant 50,000 units per year for 5 years. Determine: 1) What is the manufacturing cost of each washing machine? ii) What are the projects fixed costs? 350 300 250 y = 650x 200 $ Millions 150 y = 400x + 50000000 100 50 100000 400000 500000 200000 300000 Number of Products (*) If you cannot see the graph, please try this file Graph1.png

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