Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:4. A manufacturer of a product can be acquired at a price of $1,000,000, has an annual
operating cost of $200,000, and life of 20 years. The unit material and labor cost for the
product is $30, and each product can be sold for $50. At MARR=10% per year,
determine the production volume that makes this project breakeven. Assume zero salvage
value.
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