a)
To determine: The NPV when selling price is $18 per unit, assessment of bid price, number of units at breakeven and the level of cost.
It is a method under capital budgeting which includes the calculation of net present value of the project in which company is investing. The calculation is done by calculating the difference between the value of
b)
To determine: The number of units to be sold at break even when the selling price is $18.
Breakeven:
It refers to a situation or a condition of a firm or a business where at the given level of sales the profit of that firm or business is zero or there is neither loss nor profit. It is the point after which the firm gets the shut down situation.
c)
To determine: The highest level of fixed cost when the number of units to be sold at breakeven is 165,000.
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