19. Jurgen is an operator and works for a company producing vacuum formed blister packs. The blister packs he produces sell at 0.60€ each and he must produce 800 blister packs every 8 hr shift. He earns a minimum wage of 184€ per week. One fine day he thinks of buying a garage and equip it with all the necessary plant equipment to manufacture the blister packs. He gathers the below quotations. Can you calculate the ROI, payback period and the breakeven quantity? Vacuum forming machine -24000€ Air compressor-8000€ Garage - 85000€ Plastic sheets cost 240€ per roll and 1 roll makes 16000 blister packs.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
19. Jurgen is an operator and works for a company producing vacuum formed blister packs. The
blister packs he produces sell at 0.60€ each and he must produce 800 blister packs every 8
hr shift. He earns a minimum wage of 184€ per week. One fine day he thinks of buying a
garage and equip it with all the necessary plant equipment to manufacture the blister packs.
He gathers the below quotations. Can you calculate the ROI, payback period and the
breakeven quantity?
Vacuum forming machine -24000€
Air compressor -8000€
Garage - 85000€
Plastic sheets cost 240€ per roll and 1 roll makes 16000 blister packs.
Transcribed Image Text:19. Jurgen is an operator and works for a company producing vacuum formed blister packs. The blister packs he produces sell at 0.60€ each and he must produce 800 blister packs every 8 hr shift. He earns a minimum wage of 184€ per week. One fine day he thinks of buying a garage and equip it with all the necessary plant equipment to manufacture the blister packs. He gathers the below quotations. Can you calculate the ROI, payback period and the breakeven quantity? Vacuum forming machine -24000€ Air compressor -8000€ Garage - 85000€ Plastic sheets cost 240€ per roll and 1 roll makes 16000 blister packs.
Expert Solution
steps

Step by step

Solved in 2 steps with 8 images

Blurred answer
Knowledge Booster
Special order decisions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education