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Imagine a start - up company producing a new prodct: The sale price of the product is 3 5 0 0 0 TL / kg
Imagine a startup company producing a new prodct: The sale price of the product is TLkg The design capacity is tonyear The fixed capital investment is TL Straight line depreciation may be applied for the project life of years to zero salvage value. All other fixed charges are times TLyear Variable cost except for the raw material cost is TLkg
a What must be the price of raw material TLkg at a full capacity to get return on investment? Assume the tax ratio is
b Use the raw material price you calculated in part a to determine the capacity at the breakeven point.
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