Question
A manufacturing company leases for 100,000.00 dollars/ year a building that houses its manufacturing facilities. In addition, the machinery in the building being paid for
A manufacturing company leases for 100,000.00 dollars/ year a building that houses its manufacturing facilities. In addition, the machinery in the building being paid for installments of 20,000.00 dollar/year. Each unit of the product produced cost 15 dollars in labor and 10 dollars in materials and can be sold for 40 dollars. a) How many units per year must be sold for the company to break even. b) If 10,000 units per year are sold, what is the annual profit? c) If the selling price is lowered to 33 dollars, how many units must be sold each year for the company to earn a profit of 60,000 dollars/year.
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