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Please Show Work/ Calculations Question #3 Breakeven A production manager has obtained the following estimated costs/revenues for producing a new orbital impact wrench. Their plan
Please Show Work/ Calculations
Question #3 Breakeven A production manager has obtained the following estimated costs/revenues for producing a new orbital impact wrench. Their plan is to produce that particular model wrench for 5 years. Yearly Sales 6,000 units/year Sales Price $350/unit Variable Cost-$155/unit (no learning is involved) Initial Investment $1,750,000 Annual maintenance $300,000 (to refresh tools after each 12 months of use) (5) A. Does the company break even during year 1, Yes or No? (3) B. How many units does it take the company to make/sell to break-even the first time? 2) C. How much total profit does the company make over the 5-year period Step by Step Solution
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