The company is planning to make an investment in medical syringes and wants to sell one injector for $1. If the investment is made in İzmir, the investment will be realized with a fixed cost of $30,000. The variable cost for each injector is estimated to be $0.60. Also, the tax rate will be 30%. If the investment is made in Bitlis, one of the priority regions in development, the fixed costs will be completed to $25,000 due to the incentives. The variable cost of the injector will be $0.75, and the tax rate will be 10%.
Does the company reach the breakeven point earlier in Izmir or Bitlis?