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35.) The Company proposes to invest $7,000,000 in a new type of equipment. The fixed costs are $1,400,000 per year. The equipment will last for
35.)
The Company proposes to invest $7,000,000 in a new type of equipment. The fixed costs are $1,400,000 per year. The equipment will last for five years. The variable cost per unit is $1 and each unit sells for $6. The cost of capital is 20 percent. Calculate the financial break-even sales quantity per year. (Ignore taxes).
735,008 units | ||
815,008 units | ||
748,132 units | ||
584,380 units | ||
560,008 units |
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