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2. The following data are available: First cost $40,000 Salvage 10,000 Life Debt Ratio 40% Return on Equity (ie) 14.2% Depreciation Straight Line 15 years

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2. The following data are available: First cost $40,000 Salvage 10,000 Life Debt Ratio 40% Return on Equity (ie) 14.2% Depreciation Straight Line 15 years Labor rate Production rate Selling price Interest on Debt (id) Tax rate $12.45/hr 24/hr $1.83/unit 8.0% 30% How many units need to be sold each year to just meet the return objective? 2. The following data are available: First cost $40,000 Salvage 10,000 Life Debt Ratio 40% Return on Equity (ie) 14.2% Depreciation Straight Line 15 years Labor rate Production rate Selling price Interest on Debt (id) Tax rate $12.45/hr 24/hr $1.83/unit 8.0% 30% How many units need to be sold each year to just meet the return objective

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