Engineering Economics

7. A company plan to manufacture a product and sell it for s3.00 per unit. Equipment wil cost $250,000 and will have a salvage value of s12,000 at the end of its useful life years. The equipment can manufacture up to 2,000,000 units per year. Direct labor costs are 25 and sales expenses are so $0.25 per unit, material costs are $0.85 per per unit, and fixed overhead costs are $200,000. (a) If capital investments and return on the investment are excluded, what is the number of units that the company must manufacture and sell in order to break even with all other costs? (8 points) that the company mus depreciation is number of units (b) and sell in to yield a before-tax profit of 20%. manufacture