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Your company is considering adding a new product line. The new equipment cost is $322,000 per year with a salvage value of $42,000 at the
Your company is considering adding a new product line. The new equipment cost is $322,000 per year with a salvage value of $42,000 at the end of year 5. The variable cost per unit of the new product line will be $14.50 and the overhead cost per year to be $98,000. If the company uses a 5-year planning horizon and the price of the product is $54.25, how many units are needed to break even?
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