Question
The Quorum Company has the following cost information on its new project. Q1: What is the equation for the financial break-even price? Initial investment(Equipment): $600
The Quorum Company has the following cost information on its new 
project.
Q1: What is the equation for the financial break-even price? Initial investment(Equipment): $600 (good for 4 years) Fixed costs are $300 per year Variable costs: $3 per unit Discount rate: 10% Price: $8 per unit The quantity that will be produced and sold (per year): 70 Tax rate: 25%
Q2: If the Fixed 
were to go up by 
, what would be the 
needed in 
for Quorum to financially 
even? Do not 
it! Make a 
. Would it be 
than $1 or 
than $1? Explain.
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Personal Finance Turning Money Into Wealth
Authors: Arthur J. Keown
6th Edition
0132719169, 978-0132719162
