The equipment will produce 10,000 units p.a. generating a contribution of $2 each. He estimates that additional fixed costs will be $10,000 p.a.

1. Determine, on the basis of the above figures, whether the project is worthwhile

   The equipment will produce 10,000 units p.a. generating a contribution of $2 each. He estimates that additional fixed costs will be $10,000 p.a.

2. Determine, on the basis of the above figures, whether the project is worthwhile