A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. Using this information, answer the follwoing questions. 1. 8,000 2. $30,000 3. 4,800 How many units per year must be sold for the company to breakeven? 4. 5,019 If 10,000 units per year are sold, what is the annual profit? 5. 6,667 6. $50,000 7. $80,000

A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. Using this information, answer the follwoing questions. 1. 8,000 2. $30,000 3. 4,800 How many units per year must be sold for the company to breakeven? 4. 5,019 If 10,000 units per year are sold, what is the annual profit? 5. 6,667 6. $50,000 7. $80,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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