Question
Tamoxifen is an antagonist of the estrogen receptor in breast tissue and used as an anti-estrogen therapy for hormone receptor-positive breast cancer in pre-menopausal women.
Tamoxifen is an antagonist of the estrogen receptor in breast tissue and used as an anti-estrogen therapy for hormone receptor-positive breast cancer in pre-menopausal women. You are working at a company where the annual direct production costs producing tamoxifen is $466686, whereas the sum of the annual fixed charges, overhead costs, and general expenses is $215000. The plant is operating at 75% capacity and total annual sales is $848520 while the selling price of the drug $30. The income taxes is 24%. a. What is the break-even point in terms of produced tamoxifen? (10 p) b. What is the required capacity to reach the break-even point? (5 p) c.If the plant operates at 100% capacity, what will be the gross and net profit of the company in $?
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