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You are given the following total costs for a production facility for protective cases for laptop computers: The facility (building, land and equipment) could be
You are given the following total costs for a production facility for protective cases for laptop computers:
The facility (building, land and equipment) could be sold for $4.0 million. The best alternative investment with similar risk returns 12 percent. Calculate the price needed to guarantee that the facility doesn't have negative economic profits.
Number of units Produced ('000) Total Cost ($'000) 0 600 100 2,000 200 3,200 300 4,200 400 6,600 Number of units Produced ('000) Total Cost ($'000) 0 600 100 2,000 200 3,200 300 4,200 400 6,600Step by Step Solution
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