A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the

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A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. Use this information to answer Problems 2-54 through 2-56. Select the closest answer.


If 10,000 units per year are sold, what is the annual profit?

(a) $280,000 

(b) $50,000 

(c) $150,000

(d)−$50,000 

(e) $30,000

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Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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