An investor was presented with a production line project in which the investment volume is 285,000 dollars, the annual sales volume is 1,800 units, the unit price is 135 dollars, the annual costs are 72,000 dollars, and the annual fixed costs are 142,500 dollars. Calculate the simple rate of return and the break-even point for the project?

An investor was presented with a production line project in which the investment volume is 285,000 dollars, the annual sales volume is 1,800 units, the unit price is 135 dollars, the annual costs are 72,000 dollars, and the annual fixed costs are 142,500 dollars. Calculate the simple rate of return and the break-even point for the project?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 10E: Roberts Company is considering an investment in equipment that is capable of producing more...

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