Question
Pacific Inc. is considering adding a new production line. The additional fixed cost investment is $82,900 and the variable cost is $31.50 per unit.
Pacific Inc. is considering adding a new production line. The additional fixed cost investment is $82,900 and the variable cost is $31.50 per unit. The expected life is 10 years and MARR= 10%. If the product can be sold for $36.00/unit. What is the annual fixed cost? Ans. $xx.xxx How many units must be sold per year to break-even? X,XXX Ans.
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
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