Question
A company plans to produce a new type of product that requires an initial cost of Rp. 150,000,000, and operational and maintenance costs of Rp.
A company plans to produce a new type of product that requires an initial cost of Rp. 150,000,000, and operational and maintenance costs of Rp. 35,000 per hour. In addition, the company must pay other fees of Rp. 75,000,000 per year. Based on standard time obtained from engineering studies, it can be estimated that producing 1,000 units of product takes 150 hours. It is also estimated that the price per unit of product is Rp. 15,000 Investment is assumed to be 10 years old with zero remaining. Question: With a MARR of 20%, calculate how many units must be produced for the company to break even?
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