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Consider a Pokemon card production facility with the following cost structure: t=0: $70,000, t=1: $10000, t=2: $40,000, t=3: $10,000 (a negative cost constitutes a revenue)

Consider a Pokemon card production facility with the following cost structure:

t=0: $70,000, t=1: $10000, t=2: $40,000, t=3: $10,000 (a negative cost constitutes a revenue)

Suppose the facility can produce 10,000 packages in year 1, 15,000 packages in year 2 and 30,000 packages in year 3, but must charge the same price for the packages in each year of operation. What is the break-even selling price in this case?

MARR= 8%.

Question 2 options:

a) 2-2.20

b) 2.20-2.40

c) 2.40-2.60

d) 2.60-2.80

e) None of the above

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