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Explain please Afirm is planning to manufacture a new product. The data below have been estimated for the product a Determine the breakeven annual sales
Explain please
Afirm is planning to manufacture a new product. The data below have been estimated for the product a Determine the breakeven annual sales volume for this product b. Is it a sensible investment, considering the annual demand? Sales price $25 per unit Annual Demand 10.000 units Initial investment $1.000.000 Fixed cost $100.000 per year Variable cost $5 per unit Study period 10 years MARR 5% per year a a Breakeven annual sales = 14 650 units, b No, it is not a sensible investment b a Breakeven annual sales = 14.650 units b. Yes, it is a sensible investment a Breakeven annual sales = 11 475 units b. No, it is not a sensible investment d a Breakeven annual sales = 11,475 units b. Yes, it is a sensible investment a Breakeven annual sales = 10.000 units b. Yes, it is a sensible investmentStep by Step Solution
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