Question
A process for producing the mosquito repellant Deet has an initial investment of $175,000 with annual costs of $49,000. Income is expected to be $90,000
A process for producing the mosquito repellant Deet has an initial investment of $175,000 with annual costs of $49,000. Income is expected to be $90,000 per year.
What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon?
When i = 0%, the annual breakeven production quantity is determined to be gallons per year.
When i = 12%, the annual breakeven production quantity is determined to be gallons per year.
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Financial Accounting An Introduction To Concepts Methods And Uses
Authors: Clyde P. Stickney, Roman L. Weil
10th Edition
0324183518, 978-0324183511
