A company has a project to manufacture electrical pumps. The estimated cost for design and development is OMR 59,200. The taxes to be paid and insurance amount to OMR 10,000 per year. The cost of manufacturing a pump is OMR 10 and this cost increases every year by 20%. The company can manufacture 100 pumps every month. How much should the selling price be if the company wants to break-even in two years?
A company has a project to manufacture electrical pumps. The estimated cost for design and development is OMR 59,200. The taxes to be paid and insurance amount to OMR 10,000 per year. The cost of manufacturing a pump is OMR 10 and this cost increases every year by 20%. The company can manufacture 100 pumps every month. How much should the selling price be if the company wants to break-even in two years?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:A company has a project to
manufacture electrical pumps. The
estimated cost for design and
development is OMR 59,200. The
taxes to be paid and insurance
amount to OMR 10,000 per year. The
cost of manufacturing a pump is OMR
10 and this cost increases every year
by 20%. The company can
manufacture 100 pumps every month.
How much should the selling price be
if the company wants to break-even in
two years?
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