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GPB Inc. is thinking of purchasing a new piece of equipment to produce a new product, the Oscivapor. It will cost $10,000 to buy and
GPB Inc. is thinking of purchasing a new piece of equipment to produce a new product, the Oscivapor. It will cost $10,000 to buy and another $1,500 to install. Production costs are estimated to be $8.50 in labor per Oscivapor and $3.50 in materials per Oscivapor. What are the variable vs fixed costs? If the anticipated revenue is $15 per Oscivapor, how many units must be sold in order to break- even? If the machine could run forever, what should be the minimum revenue per Oscivapor? If an equipment index 10 years ago was 125, and the same index is now 145, how much did the machine cost 10 years ago
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