A company has a project to manufacture electrical pumps. The estimated cost for design and development is OMR 59,200. The taxes to be paid and insurance amount to OMR 10,000 per year. The cost of manufacturing a pump is OMR 10 and this cost increases every year by 20%. The company can manufacture 100 pumps every month. How much should the selling price be if the company wants to break-even in two years?

A company has a project to manufacture electrical pumps. The estimated cost for design and development is OMR 59,200. The taxes to be paid and insurance amount to OMR 10,000 per year. The cost of manufacturing a pump is OMR 10 and this cost increases every year by 20%. The company can manufacture 100 pumps every month. How much should the selling price be if the company wants to break-even in two years?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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