Calculate the turning point of economic efficiency!

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 20P
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A multiple product company had annual revenue of 18 million euro in the given year. The amount of the fixed cost was 5 million
euro, and the variable cost in total was 7 million euro. The amortization counted for 1 million euro. Owner's equity is 12 million euro and there is
no debt in capital structure. The calculated rate of capital yield requirement is 10 percent. The interest rate is 7 percent.
Calculate the turning point of economic efficiency!
Answer:
O euro O unit of products O percent
Transcribed Image Text:A multiple product company had annual revenue of 18 million euro in the given year. The amount of the fixed cost was 5 million euro, and the variable cost in total was 7 million euro. The amortization counted for 1 million euro. Owner's equity is 12 million euro and there is no debt in capital structure. The calculated rate of capital yield requirement is 10 percent. The interest rate is 7 percent. Calculate the turning point of economic efficiency! Answer: O euro O unit of products O percent
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