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Homework: Chapter 13 Homework Save Score: 0 of 1 pt 5 of 6 (0 complete) HW Score: 0%, 0 of 6 pts P13-8 (similar to)
Homework: Chapter 13 Homework Save Score: 0 of 1 pt 5 of 6 (0 complete) HW Score: 0%, 0 of 6 pts P13-8 (similar to) Question Help hor (Related to Checkpoint 13.4) (Break-even analysis) The Marvel Mfg. Company is considering whether or not to construct a new robotic production facility. The cost of this new facility is $594,000 and it is expected to have a six-year life with annual depreciation expense of $99,000 and no salvage value. Annual sales from the new facility are expected to be 1,960 units with a price of $1,040 per unit. Variable production costs are $620 per unit, and fixed cash expenses are $80,000 per year. a. Find the accounting and the cash break-even units of production. b. Will the plant make a profit based on its current expected level of operations? c. Will the plant contribute cash flow to the firm at the expected level of operations? a. The accounting break-even units of production is units. (Round to the nearest whole number.) Enter your answer in the answer box and then click Check Answer. ? 3 parts remaining Clear All Check
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