A manufacturing process at Simplicity XP has a fixed cost of $40,000 per month. A total of
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A manufacturing process at Simplicity XP has a fixed cost of $40,000 per month. A total of 100 units can be produced in 1 day at a cost of $3000 for materials and labor for the day. If the company’s MARR is 12% per year, compounded monthly, how many units must be sold each month at $50 per unit for the company to just break even?
MARRMinimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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