A manufactu operating cos product is $30 determine the value.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
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4. A manufacturer of a product can be acquired at a price of $1,000,000, has an annual
operating cost of $200,000, and life of 20 years. The unit material and labor cost for the
product is $30, and each product can be sold for $50. At MARR=10% per year,
determine the production volume that makes this project breakeven. Assume zero salvage
value.
Transcribed Image Text:4. A manufacturer of a product can be acquired at a price of $1,000,000, has an annual operating cost of $200,000, and life of 20 years. The unit material and labor cost for the product is $30, and each product can be sold for $50. At MARR=10% per year, determine the production volume that makes this project breakeven. Assume zero salvage value.
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